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ABSTRACT:
An argument brought forward by German municipalties against the new energy law is their fear of decreasing license fees paid by utilities for the right to use public roads for the transport of electricity. This paper argues from an economic point of vue that this fear is unjustified. The right to use public roads is a scarce input electricity suppliers compete for, thereby increasing municipal licence revenues. This increase can even overcompensate falling profits of an electricity producer owned by the municipalty itself if competition is intense enough and the pernmissible licence fee isn't too restrictive. |
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