volume 14 issue 4 pages 337-361

Capital recovery for the regulated firm under certainty and regulatory uncertainty

Publication typeJournal Article
Publication date1992-12-01
SJR
CiteScore
Impact factor
ISSN01650572
General Environmental Science
General Earth and Planetary Sciences
Abstract
This paper examines the rate-of-return regulated firm's incentives in negotiations over cost recovery. It develops optimal recovery paths for the firm facing certainty versus uncertainty of discretionary regulatory policy. Front-loaded capital recovery is not generally optimal under certainty, which is contrary to Financial Accounting Standards Board (FASB) rules. However, with the consideration of regulatory uncertainty, the optimal recovery path is remarkably close to FASB-approved rules. The optimal recovery under certainty becomes time-consistent if the discretionary power of the regulators to alter a previously agreed upon plan is removed.
Found 
Found 

Top-30

Journals

1
2
Journal of Regulatory Economics
2 publications, 66.67%
Utilities Policy
1 publication, 33.33%
1
2

Publishers

1
2
Springer Nature
2 publications, 66.67%
Elsevier
1 publication, 33.33%
1
2
  • We do not take into account publications without a DOI.
  • Statistics recalculated weekly.

Are you a researcher?

Create a profile to get free access to personal recommendations for colleagues and new articles.
Metrics
3
Share
Cite this
GOST |
Cite this
GOST Copy
Goodwin T. H., Patrick R. H. Capital recovery for the regulated firm under certainty and regulatory uncertainty // Resources and Energy. 1992. Vol. 14. No. 4. pp. 337-361.
GOST all authors (up to 50) Copy
Goodwin T. H., Patrick R. H. Capital recovery for the regulated firm under certainty and regulatory uncertainty // Resources and Energy. 1992. Vol. 14. No. 4. pp. 337-361.
RIS |
Cite this
RIS Copy
TY - JOUR
DO - 10.1016/0165-0572(92)90002-x
UR - https://doi.org/10.1016/0165-0572(92)90002-x
TI - Capital recovery for the regulated firm under certainty and regulatory uncertainty
T2 - Resources and Energy
AU - Goodwin, Thomas H
AU - Patrick, Robert H.
PY - 1992
DA - 1992/12/01
PB - Elsevier
SP - 337-361
IS - 4
VL - 14
SN - 0165-0572
ER -
BibTex |
Cite this
BibTex (up to 50 authors) Copy
@article{1992_Goodwin,
author = {Thomas H Goodwin and Robert H. Patrick},
title = {Capital recovery for the regulated firm under certainty and regulatory uncertainty},
journal = {Resources and Energy},
year = {1992},
volume = {14},
publisher = {Elsevier},
month = {dec},
url = {https://doi.org/10.1016/0165-0572(92)90002-x},
number = {4},
pages = {337--361},
doi = {10.1016/0165-0572(92)90002-x}
}
MLA
Cite this
MLA Copy
Goodwin, Thomas H., and Robert H. Patrick. “Capital recovery for the regulated firm under certainty and regulatory uncertainty.” Resources and Energy, vol. 14, no. 4, Dec. 1992, pp. 337-361. https://doi.org/10.1016/0165-0572(92)90002-x.