Scientific Definition
Tying utility profit to capital spent penalizes cheaper non-wire efficiency solutions.
Plain-English Definition
Tying utility profit to capital spent penalizes cheaper non-wire efficiency solutions.
Feynman Explanation
Make money on wires; lose money on conservation.
Core Principle
Tying utility profit to capital spent penalizes cheaper non-wire efficiency solutions.
Mechanisms
Pending editorial review.
Tying utility profit to capital spent penalizes cheaper non-wire efficiency solutions.
Pending editorial review.
Pending editorial review.
Cost-of-service regulation is a CapEx subsidy.
Pending editorial review.
Pending editorial review.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
Make money on wires; lose money on conservation.
Examples
- Transmission overbuild relative to demand-side alternatives.
- Cost-of-service regulation is a CapEx subsidy.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Performance-based ratemaking. Outcome-weighted returns.
Measurement Approaches
Pending editorial review.
Evidence
Pending editorial review.
Pending editorial review.
The Perverse Incentive Lens™
How this behavior is exploited — and how to redesign around it.
- Performance-based ratemaking. Outcome-weighted returns.
Pending editorial review.
Pending editorial review.
Interactive Mini Network
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Knowledge Graph Neighbors
Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.
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