Publication:
Designing Natural Gas Distribution Concessions in a Megacity: Tradeoffs between Scale Economies and Information Disclosure in Mexico City

Simple item page
dc.contributor.authorRosellon, Juan
dc.contributor.authorHalpern, Jonathan
dc.date.accessioned2013-06-26T17:13:29Z
dc.date.available2013-06-26T17:13:29Z
dc.date.issued2004-01-01
dc.description.abstractIn 1995 the Mexican government initiated structural reform of the natural gas sector-reform that permitted private investment in transportation, storage, distribution, trade and marketing while maintaining a State monopoly in production. It prepared a detailed regulatory framework to implement the sector liberalization, including an element to develop distribution systems through concessions in specific geographic areas. The concessions are bid and the winner is permitted physical exclusivity for 12 years in gas distribution but not in gas marketing. In each concession award process a distribution geographical area is defined and minimum consumer coverage targets are established. Bidders present technical and financial proposals, including a market demand study. The winning proposal must be technically sound and offer the lowest average revenue for the first five-year period. Densely populated geographic areas pose a problem for exclusivity in distribution. If the concession is granted to a single firm, scale economies might be very attractive, but regulating a mega-monopoly would be difficult. If the distribution area is subdivided, economies of scale decrease while information for comparative regulation increases. These and such elements as technical characteristics of the geographic area and potential for competition in related services were considered when designing natural gas distribution franchises for the Mexico City Metropolitan Area.en
dc.identifierhttp://documents.worldbank.org/curated/en/2004/01/5296540/designing-natural-gas-distribution-concessions-megacity-tradeoffs-beetween-scale-economies-information-disclosure-mexico-city
dc.identifier.doi10.1596/1813-9450-2538
dc.identifier.urihttps://hdl.handle.net/10986/14208
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relation.ispartofseriesPolicy Research Working Paper;No.2538
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO MARKETS
dc.subjectAVERAGE CONSUMPTION
dc.subjectAVERAGE COSTS
dc.subjectBENCHMARK
dc.subjectBENCHMARKING
dc.subjectBENCHMARKS
dc.subjectBIDDING
dc.subjectCAPITAL COSTS
dc.subjectCOMPARATIVE ANALYSIS
dc.subjectCONSUMERS
dc.subjectCONSUMPTION LEVELS
dc.subjectCOST ANALYSIS
dc.subjectCOST FUNCTIONS
dc.subjectCOST MINIMIZATION
dc.subjectDEBT
dc.subjectDEMAND FUNCTIONS
dc.subjectDEMAND GROWTH
dc.subjectDEMOGRAPHICS
dc.subjectDISTRIBUTION SYSTEMS
dc.subjectECOLOGY
dc.subjectECONOMIC EFFICIENCY
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIES OF SCALE
dc.subjectENERGY PRICES
dc.subjectENVIRONMENTAL POLICIES
dc.subjectEQUILIBRIUM
dc.subjectEXPLOSIONS
dc.subjectFORECASTS
dc.subjectFORESTS
dc.subjectFUELS
dc.subjectFUNCTIONAL FORMS
dc.subjectGROWTH POTENTIAL
dc.subjectGROWTH RATE
dc.subjectHEATING
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectINFORMATION DISCLOSURE
dc.subjectINPUT PRICES
dc.subjectLAND USE
dc.subjectLOCAL AUTHORITIES
dc.subjectLOW TARIFFS
dc.subjectMARKET CONDITIONS
dc.subjectMARKET DEMAND
dc.subjectMARKET POWER
dc.subjectMARKETING
dc.subjectMONOPOLIES
dc.subjectNATURAL MONOPOLY
dc.subjectOIL
dc.subjectOIL CONSUMPTION
dc.subjectOIL PRICES
dc.subjectPERMITS
dc.subjectPETROLEUM
dc.subjectPHYSICAL CHARACTERISTICS
dc.subjectPOPULATION DENSITY
dc.subjectPOWER PLANTS
dc.subjectPRICE CAPS
dc.subjectPRICE REGULATION
dc.subjectPRIVATE INFORMATION
dc.subjectPURCHASING
dc.subjectPURCHASING POWER
dc.subjectREGULATORY FRAMEWORK
dc.subjectRESIDENTIAL CONSUMERS
dc.subjectRIVERS
dc.subjectSAFETY
dc.subjectSALES
dc.subjectSOCIAL DEVELOPMENT
dc.subjectSUBSTITUTES
dc.subjectSUBSTITUTION
dc.subjectSUNK COSTS
dc.subjectSUPPLY CONTRACTS
dc.subjectTOTAL REVENUE
dc.subjectTRADEOFFS
dc.subjectUNCERTAINTY
dc.subjectUSERS
dc.titleDesigning Natural Gas Distribution Concessions in a Megacity: Tradeoffs between Scale Economies and Information Disclosure in Mexico Cityen
dspace.entity.typePublication
okr.crosscuttingsolutionareaPublic-Private Partnerships
okr.crossref.titleDesigning Natural Gas Distribution Concessions in a Megacity: Tradeoffs between Scale Economies and Information Disclosure in Mexico City
okr.date.doiregistration2025-04-10T07:18:04.796517Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2004/01/5296540/designing-natural-gas-distribution-concessions-megacity-tradeoffs-beetween-scale-economies-information-disclosure-mexico-city
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid234361468774577802
okr.identifier.doi10.1596/1813-9450-2538
okr.identifier.externaldocumentum000090341_20041108130054
okr.identifier.internaldocumentum5296540
okr.identifier.reportWPS2538
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/11/08/000090341_20041108130054/Rendered/PDF/wps2538.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryMexico
okr.topicPrivate Sector Development::Business Environment
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Consumption
okr.topicEnvironmental Economics and Policies
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicInternational Economics and Trade::Access to Markets
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
wps2538.pdf
Size:
370.05 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
wps2538.txt
Size:
76.73 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers