BackgroundManufacturers justify the high prices for orphan drugs on the basis that the associated R&D costs must be spread over few patients. The proliferation of these drugs in the last three decades, combined with high prices commonly in excess of $100,000 per patient per year are placing a substantial strain on the budgets of drug plans in many countries. Do insurers spend a growing portion of their budgets on small patient populations, or leave vulnerable patients without coverage for valuable treatments? We suggest that a third option is present in the form of a cost-based regulatory mechanism.MethodsThis article explores the use of a cost-based price control mechanism for orphan drugs, adapted from the standard models applied in utilities regulation.Results and conclusionsA rate-of-return style model, employing yardsticked cost allocations and a modified two-stage rate of return calculation could be effective in setting a new standard for orphan drugs pricing. This type of cost-based pricing would limit the costs faced by insurers while continuing to provide an efficient incentive for new drug development.

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Dans cet article, les auteurs présentent un modèle de comptabilisation des émissions de gaz à effet de serre (GES) basé sur la consommation et sur une présentation régionale intrants-extrants. Les résultats obtenus grâce à ce modèle permettent de fournir une série de tableaux détaillés intrants-extrants qui illustrent le rô le du commerce dans les émissions intrinsèques à la fois par régions et par secteurs (contrairement aux tableaux habituels intrants-extrants selon la valeur financière). Après avoir expliqué en détail leur modèle de comptabilisation des GES intrinsèques, les auteurs analysent brièvement les empreintes carbone qui sont basées sur la production et celles qui se sont basées sur la consommation de même que le rô le du commerce interrégional dans les émissions intrinsèques dans les provinces canadiennes pour la période 2004-2011. L'objectif de cette analyse est de présenter le modèle et d'illustrer des conclusions générales afin de mettre en lumière l'utilité des tableaux détaillés intrants-extrants de GES en tant qu'outils dans des recherches à venir. Mots clés : empreinte carbone, émissions intrinsèques, comptabilisation des émissions, intrants-extrants environnementaux We present a consumption-based greenhouse gas (GHG) accounting model for Canada, based on a multiregional input-output formulation. The outputs resulting from this model comprise a set of detailed inputoutput tables displaying trade in embodied emissions across regions and sectors (in contrast to the usual financial value input-output tables). After a complete exposition of our embodied GHG emission accounting model, we provide a brief analysis of production-and consumption-based GHG emission footprints and the related interregional trade in embodied emissions across Canadian provinces for 2004-2011. Our initial analysis is intended to present the model and illustrate general conclusions to highlight the utility of the resulting detailed GHG input-output tables as a resource for future research.

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Partial upgrading of bitumen (PUB) improves the quality (increases the value) of crude oil from bituminous sands to the level where pipeline specifications are met without—or with reduced use of—costly diluent. By reducing the cost of transportation to downstream refineries, PUB can serve as a solution to market access challenges and takeaway capacity constraints for oil sand producers. However, despite significant government and private investments, proponents in the Canadian province of Alberta still face challenges in commercializing the technology. We used a capacity investment model to explore the expected effects of different policy support types on a firm’s decision to invest in a partial upgrading facility integrated with an existing oil sands extraction facility. We evaluated 10 potential policy interventions and their expected effects on investments in partial upgrading. We focused our analysis of these policy interventions on the revenues and costs of firms, risk sharing, and overall public benefits and costs. We find that the majority of interventions are transferred from government to private interests, with little public benefits. Defensible policy actions include capital investment at the demonstration phase, providing incentives for industry collaboration, equity investment at the commercial stage, and reforming the government’s bitumen valuation methodology.