I study a regulatory process in which both the regulator and the regulated firm propose prices that in case of disagreement are settled through final-offer arbitration – a practice currently used in Chile for setting prices in the water sector. Rather than submitting a single offer, each...

The paper studies the design of a treadable permit system with opt-in possibilities for LDCs countries in the context of climate change. In setting the optimal opt-in rule, the regulator faces a trade-off between production efficiency (minimization of control costs) and information rent...

One of the critiques to the regulatory framework of the Chilean electricity sector is the lack of flexibility for regulated prices (nodal prices) to adapt to changes in supply and demand. We develop a simple model to estimate welfare losses when using uni

Estudiamos esquemas de tarificación de la transmisión eléctrica en un contexto donde los precios de la electricidad son determinados en una bolsa de energía. Se pone énfasis en el impacto que significa traspasar, ya sea a través de un cargo fijo mensual o

Políticas internacionales de limitación de emisiones de gases efecto invernadero en el período 2008-2012 pueden tener importantes efectos en la economía chilena. Durante este período,los países menos desarrollados no están sujetos a ningún tipo de control sobre estas emisiones, pero...

Efficient regulation of the commons requires information about the regulated firms that is rarely available to regulators (e.g., cost of pollution abatement). Montero (2008) proposes a simple mechanism for inducing firms to truthfully reveal their privat

The Climate Action Teams (CAT) initiative is a mechanism that supports international resource transfers for climate mitigation. CAT operates through government-to-government agreements based on verified mitigation outcomes beyond nationally determined contribution (NDC) commitments in one...