Economics of regulation

Aims of the course

a) Understanding the importance of economic regulation.
b) Understanding how economic regulation is connected to market liberalisation.
c) Gain knowledge of different methods of economic regulation and understanding motives of different shareholders.
d) Students become acquainted with the role of the EU regulatory agencies.
e) Students get insights in the regulation process of European and Slovenian public utilities
f) Understanding the impact of regulation on prices and returns of regulated firms.

Course syllabus

Types of economic regulation and theories of economic regulation
Rationale for economic regulation
Price regulation: normative analysis of natural monopoly regulation – efficient prices
Economic regulation in practice: the USA rate of return regulation and the British RPI-X incentive based regulation
Benchmarking in regulation
Regulation of quality
Economics of environmental regulation: instruments and cases
Common principles of regulation and liberalisation of markets in the EU
Economic regulation of interconnection (in the EU and Slovenia)
Regulation of the energy industry (use of network charges): electricity and gas (in the EU and Slovenia)
Economic regulation of transport
Regulation of water supply, sewerage and waste water treatment

Course director(s)