Designing natural gas distribution concessions in a megacity

Designing natural gas distribution concessions in a megacity

by Juan Rosellón

Part of Policy research working paper ;

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Private participation in the development of natural gas distribution networks is often introduced through the award of exclusive concessions for defined geographic zones. Designing such franchises in a megacity poses a challenge in striking a balance between economies of scale (few distributors) and information disclosure for regulation (more distributors). Approaches to making these and related tradeoffs are analyzed through a case study of Mexico City.

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