Designing Natural Gas Distribution Concessions in a Megacity

Tradeoffs Between Scale Economies and Information Disclosure in Mexico City

• Author(s): Juan Rosellón, Jonathan Halpern,
• Publisher: World Bank Publications
• Pages: 25
• Language: en

Description:... 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.