Obsolescence, Gas Industry, Valuation of public utilities
This paper defines and discusses the general challenges of measuring obsolescence in property appraisal and briefly reviews past attempts to estimate obsolescence in cost-regulated industries by using performance comparisons. An improved method of measuring obsolescence would reduce disagreements over valuation of cost-regulated industries. The method proposed here uses data envelopment analysis and is illustrated by an analysis of gas pipeline firms.
Walters, Lawrence C.; Cornia, Gary C.; Shank, David W.; Gerschefske, Charles; Ulrich, Kenneth C.; and Freeman, Mark
"Measuring obsolescence in regulated firms: Enhancements to the cost approach,"
Assessment Journal: Vol. 1
, Article 5.
Available at: https://researchexchange.iaao.org/assessment_journal/vol1/iss3/5