IDEAS home Printed from https://ideas.repec.org/a/rfe/zbefri/v33y2015i2p275-297.html
   My bibliography  Save this article

Growth potential of energy sector reforms: new evidence on EU and Southeast European countries by exploring impact on electricity generation

Author

Listed:
  • Nela Vlahinic Lenz

    (Faculty of Economics,University of Rijeka, Rijeka, Croatia)

  • Vedran Prsa

    (JP Elektroprivreda BiH – Subsidiary Elektrodistribucija Bihac, Bosnia and Herzegovina)

Abstract

The aim of this research is to investigate the impact of energy sector reforms on electricity generation and thus economic growth in EU and Southeast European countries. The paper aims at clarifying whether the impact of energy sector reforms on generation efficiency differs among countries according to their level of development and regional characteristics. Our hypothesis is that the EU reform model is not appropriate for all Member States and Southeast European countries since it does not improve efficiency in electricity generation in all countries and therefore, it can hamper economic growth. For testing the defined hypothesis the panel regression model with fixed effects has been used. The research results show that unlike in the EU-15 (old Member States), energy sector reforms in the EU-12 (new Member States), and selected Southeast European countries (Energy Community contracting parties) have no significant impact on electricity transmission and distribution losses. These evidences imply that the uniform EU reform model does not improve efficiency of electricity generation in less developed countries. On the contrary it can even hamper economic growth and therefore it cannot be appropriate for all Member States. The reason lies in the fact that successful reform model requires adequate level of institutional resources that are missing in most transition and post-transition countries.

Suggested Citation

  • Nela Vlahinic Lenz & Vedran Prsa, 2015. "Growth potential of energy sector reforms: new evidence on EU and Southeast European countries by exploring impact on electricity generation," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 33(2), pages 275-297.
    • Handle: RePEc:rfe:zbefri:v:33:y:2015:i:2:p:275-297
    as

    Download full text from publisher

    File URL: http://www.efri.uniri.hr/sites/efri.uniri.hr/files/cr-collections/2/08-vlahinic-prsa-2015-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    2. Pollitt, Michael, 2009. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Utilities Policy, Elsevier, vol. 17(1), pages 13-23, March.
    3. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014, December.
    4. Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming the power sector in transition: Do institutions matter?," Energy Economics, Elsevier, vol. 34(5), pages 1675-1682.
    5. Nagayama, Hiroaki, 2007. "Effects of regulatory reforms in the electricity supply industry on electricity prices in developing countries," Energy Policy, Elsevier, vol. 35(6), pages 3440-3462, June.
    6. Unknown, 1993. "1993/94 Winter," CWAE Newsletter, Agricultural and Applied Economics Association, Committee on Women in Agricultural Economics (CWAE), pages 1-12.
    7. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    8. Unknown, 1993. "993 Winter/Spring, Volume 7, Number ," COSBAE Newsletter, Agricultural and Applied Economics Association, Committee on the Opportunities and Status of Blacks in Agricultural Economics (COSBAE), pages 1-9.
    9. World Bank, 2003. "World Development Indicators 2003," World Bank Publications - Books, The World Bank Group, number 13920, December.
    10. Unknown, 1993. "1993 Spring," CWAE Newsletter, Agricultural and Applied Economics Association, Committee on Women in Agricultural Economics (CWAE), pages 1-12.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adwoa Asantewaa & Tooraj Jamasb & Manuel Llorca, 2022. "Electricity Sector Reform Performance in Sub-Saharan Africa: A Parametric Distance Function Approach," Energies, MDPI, vol. 15(6), pages 1-29, March.
    2. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    3. Jamasb, Tooraj & Thakur, Tripta & Bag, Baidyanath, 2018. "Smart electricity distribution networks, business models, and application for developing countries," Energy Policy, Elsevier, vol. 114(C), pages 22-29.
    4. Hasan Cömert, 2013. "Central Banks and Financial Markets," Books, Edward Elgar Publishing, number 14867.
    5. Erdogdu, Erkan, 2013. "Essays on Electricity Market Reforms: A Cross-Country Applied Approach," MPRA Paper 47139, University Library of Munich, Germany.
    6. Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    7. Erdogdu, Erkan, 2013. "A cross-country analysis of electricity market reforms: Potential contribution of New Institutional Economics," Energy Economics, Elsevier, vol. 39(C), pages 239-251.
    8. Bagayev, Igor & Najman, Boris, 2013. "Less quality more costs: Does local power sector reliability matter for electricity intensity?," MPRA Paper 46943, University Library of Munich, Germany.
    9. Bastianin, Andrea & Castelnovo, Paolo & Florio, Massimo, 2018. "Evaluating regulatory reform of network industries: a survey of empirical models based on categorical proxies," Utilities Policy, Elsevier, vol. 55(C), pages 115-128.
    10. Raoul Minetti & Pierluigi Murro & Zeno Rotondi & Susan Chun Zhu, 2019. "Financial Constraints, Firms’ Supply Chains, and Internationalization," Journal of the European Economic Association, European Economic Association, vol. 17(2), pages 327-375.
    11. Saungweme Talknice & Odhiambo Nicholas M., 2018. "An Analysis of Public Debt Servicing in Zambia: Trends, Reforms and Challenges," Croatian International Relations Review, Sciendo, vol. 24(81), pages 113-136, May.
    12. Rana Hasan & Devashish Mitra & Mehmet Ulubasoglu, 2007. "Institutions and Policies for Growth and Poverty Reduction: The Role of Private Sector Development," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 69-116.
    13. Rabindra Nepal & Tooraj Jamasb & Clement Allan Tisdell, 2014. "Market-related reforms and increased energy efficiency in transition countries: empirical evidence," Applied Economics, Taylor & Francis Journals, vol. 46(33), pages 4125-4136, November.
    14. Imam, Mahmud I. & Jamasb, Tooraj & Llorca, Manuel, 2019. "Sector reforms and institutional corruption: Evidence from electricity industry in Sub-Saharan Africa," Energy Policy, Elsevier, vol. 129(C), pages 532-545.
    15. Agustín S. Bénétrix & Kevin H. O’Rourke & Jeffrey G. Williamson, 2012. "The Spread of Manufacturing to the Periphery 1870-2007: Eight Stylized Facts," Working Papers 0021, European Historical Economics Society (EHES).
    16. Ahmed, Tauqir & Bhatti, Arshad Ali, 2019. "Do power sector reforms affect electricity prices in selected Asian countries?," Energy Policy, Elsevier, vol. 129(C), pages 1253-1260.
    17. Dasgupta, Shouro & Bhattacharya, Debapriya & Neethi, Dwitiya Jawher, 2013. "Does Democracy Impact Economic Growth? Exploring the Case of Bangladesh – A Cointegrated VAR Approach," MPRA Paper 56621, University Library of Munich, Germany.
    18. Bjrnskov, Christian, 2009. "Social trust and the growth of schooling," Economics of Education Review, Elsevier, vol. 28(2), pages 249-257, April.
    19. Christian Bjørnskov & Axel Dreher & Justina Fischer, 2007. "The bigger the better? Evidence of the effect of government size on life satisfaction around the world," Public Choice, Springer, vol. 130(3), pages 267-292, March.
    20. Erdogdu, Erkan, 2010. "Electricity Market Reform: Lessons for developing countries," MPRA Paper 27317, University Library of Munich, Germany.

    More about this item

    Keywords

    energy sector reforms; electricity generation; economic growth; transmission and distribution losses; EU; Southeast Europe;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfe:zbefri:v:33:y:2015:i:2:p:275-297. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Danijela Ujcic (email available below). General contact details of provider: https://edirc.repec.org/data/efrijhr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.