Study Notes that Gas Procurement Incentive Mechanisms Can Distort Decisions

摘要

GAS PROCUREMENT INCENTIVE mechanisms(GPIMs),which are designed to provide incentives for utilities to purchase,supply and manage natural gas economically,often result in weak or distorted incentives for natural gas procurement decisions,a study concludes.The study,A Hard Look at Incentive Mechanisms for Natural Gas Procurement,was released by the National Regulatory Research Institute(NRRI).The authors were Ken CosteEo,NRRI senior institute economist,and James F.Wilson,principal,LECG.