About this product

Product Identifiers

PublisherElsevier Science & Technology

ISBN-10012812587X

ISBN-139780128125878

eBay Product ID (ePID)10038265562

Product Key Features

Number of Pages354 Pages

Publication NameRisk and Return for Regulated Industries

LanguageEnglish

Publication Year2017

SubjectDecision-Making & Problem Solving, Economics / Macroeconomics, Investments & Securities / General

TypeTextbook

Subject AreaBusiness & Economics

AuthorDan Harris, Bente Villadsen, Lawrence Kolbe, Michael J. Vilbert

FormatTrade Paperback

Dimensions

Item Length9 in

Item Width6 in

Additional Product Features

Intended AudienceScholarly & Professional

Dewey Edition23

Reviews" Risk and Return for Regulated Industries is a must-read for anyone analyzing or working in regulatory finance. The authors' treatment of the subject matter is both comprehensive and accessible." --John Graham, Duke University " Every practitioner in this field will find this book an invaluable reference for its up-to-date explanations of rate of return theory and practice. Its discussion and insights into rate regulation in the U.K., Australia, and New Zealand, along with its discussion of the cost of capital for MLPs and REITs, are particularly relevant in view of the dramatic changes facing the electric industry and the regulators' drive to change how utilities are incented, and how they make money ." --Richard Patterson, Pacific Gas and Electric Company "This authoritative work comes at a critical time in utility regulation. Rapid changes in technology, markets, and politics are affecting utilities' ability to raise capital. Continued efficient investment is possible only if utility regulators understand utility finance." --Mark A. Jamison, University of Florida "This volume enables us to use cross-comparisons to provide greater insight into rate and risk issues of our own industries. I look forward to using it to probe financing issues of the water and civil infrastructure sectors." --Neil S. Grigg, Colorado State University " Risk and Return for Regulated Industries provides comprehensive coverage of the models and methods used for one of the most difficult steps in the determination of government-regulated prices: the estimation of cost of capital. The text is well-grounded in finance theory, but its strength is the focus on practical application of these estimation methods and the international examples from which we all may learn." -- Larry Blank, New Mexico State University "Traditional public utility economics seemed to be on its way to becoming a subject for the history of economic thought. Risk and Rate of Return for Regulated Industries demonstrates that, far from disappearing, the issues are increasingly important today as public-private-partnerships blur the lines between regulation and public production. This volume is a comprehensive restatement and updating of the issues of rate base determination and the calculation of the cost of capital, with an emphasis on incorporating issues of risk. It belongs on the shelf for any student of twenty-first century price regulation." --Ken Boyer, Michigan State University " This book will appeal to regulators, practitioners, and academics with an interest in cost of capital determination in regulated industries. Its depth of coverage of finance principles caters to interested readers from diverse backgrounds such as economics and law. Its greatest strength is its international focus and its discussion of regulatory practices globally, which I suspect will be enlightening to even the most experienced people in the field." --Philip Gharghori, Monash University, "This authoritative work comes at a critical time in utility regulation. Rapid changes in technology, markets, and politics are affecting utilities' ability to raise capital. Continued efficient investment is possible only if utility regulators understand utility finance." --Mark A. Jamison, University of Florida, "This authoritative work comes at a critical time in utility regulation. Rapid changes in technology, markets, and politics are affecting utilities' ability to raise capital. Continued efficient investment is possible only if utility regulators understand utility finance." --Mark A. Jamison, University of Florida "This volume enables us to use cross-comparisons to provide greater insight into rate and risk issues of our own industries. I look forward to using it to probe financing issues of the water and civil infrastructure sectors." --Neil S. Grigg, Colorado State University, " Risk and Return for Regulated Industries is a must-read for anyone analyzing or working in regulatory finance. The authors' treatment of the subject matter is both comprehensive and accessible." --John Graham, Duke University "This authoritative work comes at a critical time in utility regulation. Rapid changes in technology, markets, and politics are affecting utilities' ability to raise capital. Continued efficient investment is possible only if utility regulators understand utility finance." --Mark A. Jamison, University of Florida "This volume enables us to use cross-comparisons to provide greater insight into rate and risk issues of our own industries. I look forward to using it to probe financing issues of the water and civil infrastructure sectors." --Neil S. Grigg, Colorado State University " Risk and Return for Regulated Industries provides comprehensive coverage of the models and methods used for one of the most difficult steps in the determination of government-regulated prices: the estimation of cost of capital. The text is well-grounded in finance theory, but its strength is the focus on practical application of these estimation methods and the international examples from which we all may learn." -- Larry Blank, New Mexico State University "Traditional public utility economics seemed to be on its way to becoming a subject for the history of economic thought. Risk and Rate of Return for Regulated Industries demonstrates that, far from disappearing, the issues are increasingly important today as public-private-partnerships blur the lines between regulation and public production. This volume is a comprehensive restatement and updating of the issues of rate base determination and the calculation of the cost of capital, with an emphasis on incorporating issues of risk. It belongs on the shelf for any student of twenty-first century price regulation." --Ken Boyer, Michigan State University " This book will appeal to regulators, practitioners, and academics with an interest in cost of capital determination in regulated industries. Its depth of coverage of finance principles caters to interested readers from diverse backgrounds such as economics and law. Its greatest strength is its international focus and its discussion of regulatory practices globally, which I suspect will be enlightening to even the most experienced people in the field." --Philip Gharghori, Monash University

Dewey Decimal332.672

Table Of Content1. Motivation: Why a Book Now on the Required Rate of Return?2. Legal Foundations and Regulatory Frameworks for a Fair Return3. Financial Asset Pricing Principles4. The Capital Asset Pricing Model and Variations5. Discounted Cash Flow Models6. Multifactor and Other Cost of Capital Estimation Models7. Effects of Capital Structure on Cost of Capital8. Approaches to Rate Base Measurement9. Rate of Return Practices in Use10. Asymmetric Risk: Theory and Examples11. Emerging Issues and Implications for Cost of Capital

SynopsisRisk and Return for Regulated Industries provides a much-needed, comprehensive review of how cost of capital risk arises and can be measured, how the special risks regulated industries face affect fair return, and the challenges that regulated industries are likely to face in the future. Rather than following the trend of broad industry introductions or textbook style reviews of utility finance, it covers the topics of most interest to regulators, regulated companies, regulatory lawyers, and rate-of-return analysts in all countries. Accordingly, the book also includes case studies about various countries and discussions of the lessons international regulatory procedures can offer. Presents a unified treatment of the regulatory principles and practices used to assess the required return on capital Addresses current practices before exploring the ways methods play out in practice, including irregularities, shortcomings, and concerns for the future Focuses on developed economies instead of providing a comprehensive global reviews Foreword by Stewart C. Myers, Risk and Return for Regulated Industries provides a much-needed, comprehensive review of how cost of capital risk arises and can be measured, how the special risks regulated industries face affect fair return, and the challenges that regulated industries are likely to face in the future. Rather than following the trend of broad industry introductions or textbook style reviews of utility finance, it covers the topics of most interest to regulators, regulated companies, regulatory lawyers, and rate-of-return analysts in all countries. Accordingly, the book also includes case studies about various countries and discussions of the lessons international regulatory procedures can offer.

LC Classification NumberHG4028.C4