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Electricity reform in Argentina: Lessons for developing countries

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Pollitt, Michael

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Abstract

Argentina was one of the first countries in the world to implement a comprehensive reform of its electricity sector. Among developing countries only Chile has had a comparably comprehensive and successful reform. This paper traces the history of the Argentine reform, which began in 1992, and assesses its progress and its lessons. We conclude that the reform was very successful prior to the collapse of the Argentine peso in early 2002. We suggest lessons for the generation, transmission and distribution (and retailing) sectors, as well as the economic regulation of electricity and the general institutional environment. We note that the achievements of the sector have been severely strained by the government's poor energy policy since the crisis.

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Publisher Info
Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 30 (2008)
Issue (Month): 4 (July)
Pages: 1536-1567
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Handle: RePEc:eee:eneeco:v:30:y:2008:i:4:p:1536-1567

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Benitez, Daniel A. & Chisari, Omar O. & Estache, Antonio, 2001. "Can the Gains from Argentina's Utilities Reform Offset Credit Shocks?," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. Manuel A. Abdala, 2001. "Institutions, Contracts And Regulation Of Infrastructure In Argentina," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 217-254, November. [Downloadable!]
  3. Chisari, Omar O. & Dal-Bo, Pedro & Romero, Carlos A., 2001. "High-tension electricity network expansions in Argentina: decision mechanisms and willingness-to-pay revelation," Energy Economics, Elsevier, vol. 23(6), pages 697-715, November. [Downloadable!] (restricted)
  4. Pollitt, M.G., 1999. "A survey of the liberalisation of public enterprises in the UK since 1979," Cambridge Working Papers in Economics 9901, Faculty of Economics, University of Cambridge. [Downloadable!]
  5. Littlechild, S.C. & Skerk, C.J., 2004. "Regulation of transmission expansion in Argentina Part II: Developments since the Fourth Line," Cambridge Working Papers in Economics 0465, Faculty of Economics, University of Cambridge. [Downloadable!]
  6. Chisari, Omar & Estache, Antonio & Romero, Carlos, 1997. "Winners and losers from utility privatization in Argentina : lessons from a general equilibrium model," Policy Research Working Paper Series 1824, The World Bank. [Downloadable!]
  7. Federico Sturzenegger & Ernesto Schargrodsky & Sebastian Galiani & Paul Gertler, 2003. "The Costs and Benefits of Privatization in Argentina: A Microeconomic Analysis," RES Working Papers 3148, Inter-American Development Bank, Research Department. [Downloadable!]
  8. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, December.
  9. Artana, Daniel & Navajas, Fernando & Urbiztondo, Santiago, 2001. "Regulation policies towards utilities and competitive industries. The case of Argentina," The Quarterly Review of Economics and Finance, Elsevier, vol. 41(5), pages 585-607. [Downloadable!] (restricted)
  10. Green, Richard J & Newbery, David M, 1992. "Competition in the British Electricity Spot Market," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 929-53, October. [Downloadable!] (restricted)
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  1. Martín Gonzalez-Eiras & Martín A. Rossi, 2007. "The Impact of Electricity Sector Privatization on Public Health," RES Working Papers 3228, Inter-American Development Bank, Research Department. [Downloadable!]
  2. Paul L Joskow, 2005. "Incentive Regulation In Theory And Practice - Electricity Distribution And Transmission Networks," Working Papers 0514, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
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  3. Pollitt, M., 2007. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Cambridge Working Papers in Economics 0756, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
  4. Littlechild, S.C. & Ponzano, E.A., 2007. "Transmission expansion in Argentina 5: the Regional Electricity Forum of Buenos Aires Province," Cambridge Working Papers in Economics 0762, Faculty of Economics, University of Cambridge. [Downloadable!]
  5. Michael Pollitt, 2004. "Electricity Reform in Chile Lessons for Developing Countries," Working Papers 0416, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
    Other versions:
  6. Martín Gonzalez-Eiras & Martín A. Rossi, 2007. "El impacto de la privatización del sector eléctrico en la salud pública," RES Working Papers 3229, Inter-American Development Bank, Research Department. [Downloadable!]
  7. Littlechild, S.C. & Skerk, C.J., 2004. "Regulation of transmission expansion in Argentina Part I: State ownership, reform and the Fourth Line," Cambridge Working Papers in Economics 0464, Faculty of Economics, University of Cambridge. [Downloadable!]
  8. Machiel Mulder & Victoria Shestalova & Marc Lijesen, 2005. "Vertical separation of the energy-distribution industry," CPB Documents 84, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  9. Littlechild, S.C. & Skerk, C.J., 2004. "Regulation of transmission expansion in Argentina Part II: Developments since the Fourth Line," Cambridge Working Papers in Economics 0465, Faculty of Economics, University of Cambridge. [Downloadable!]
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