Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/269887 
Year of Publication: 
2021
Series/Report no.: 
Working Paper Series No. 17
Publisher: 
Bocconi University, Centre for Research on Geography, Resources, Environment, Energy and Networks (GREEN), Milan
Abstract: 
In this discussion paper I review and discuss the main economic and technical issues affecting the Regulatory WACC assessment in the sector of regulated utilities. I focus on three main compelling issues (the estimation of the risk-free rate, the treatment of risky debt, the calculation of the equity risk premium), for which I analyse the proposed approach of the Italian Regulatory Authority for Energy, Networks and Environment (ARERA) and some alternative viewpoints that can fulfil the current debate. Moreover, I also analyse some minor technical issues relating the consideration of a small size risk premium in the cost of capital estimation and the optimal investment level.
Document Type: 
Working Paper

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