Investments projects in natural gas distribution in Italy: A model of social cost-benefit analysis

Author/s Francesco Gullì
Publishing Year 2017 Issue 2016/3 Language English
Pages 21 P. 5-25 File size 234 KB
DOI 10.3280/EFE2016-003001
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The territory of Italy is divided into 177 distribution areas each of them will be auctioned. The regulation of these tenders requires to integrate the economic and technical offers with specific social cost-benefit analyses (CBA) proving the benefits of the different proposed investments in natural gas distribution facilities. This paper proposes an original method to carry out such a social cost-benefit analysis taking into account the different typologies of investments and namely projects to connect new customers, projects to increase security of supply, projects to improve service quality and finally investments to reduce the risk of severe accidents. An overall formula is also proposed in order to account for the possible combinations of the projects mentioned above.

Keywords: Natural gas distribution, cost-benefit analysis

Jel codes: Q4, Q5, H23, H43

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  • The design of the tenders for natural gas distribution in Italy: How much are territorial districts really contestable? Francesco Gullì, in ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT 1/2019 pp.5
    DOI: 10.3280/EFE2019-001001

Francesco Gullì, Investments projects in natural gas distribution in Italy: A model of social cost-benefit analysis in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 3/2016, pp 5-25, DOI: 10.3280/EFE2016-003001