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Reform and Regulation of the Electricity Sectors in Developing Countries

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  • Jamasb, T.

Abstract

The 1990s witnessed a worldwide trend toward electricity sector reforms in developed and developing economies. These reforms have generally been based on private participation, regulatory reform, and competition in the sector. This paper reviews and draws lessons from the reform experience in developing countries. Developing countries have had to reform technically and financially less efficient electricity systems with less developed private sectors, weak economic and political institutions, shortage of skilled human resources, and lack of regulatory experience. The paper argues that competition and regulatory reform are equally important to the success of reforms. Also, the sector’s systemic characteristics and the country’s institutional endowment should weight equally in the design of reforms. In addition, distributional and access to service aspects of reforms call for a redefined state involvement rather than a complete withdrawal from the sector.

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Bibliographic Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0226.

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Length: 64
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:cam:camdae:0226

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Keywords: Electricity; Reform; Regulation;

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References

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  1. Jamasb, T. & Pollitt, M., 2001. "Benchmarking and Regulation of Electricity Transmission and Distribution Utilities: Lessons from International Experience," Cambridge Working Papers in Economics 0101, Faculty of Economics, University of Cambridge.
  2. Paul L. Joskow & Edward Kohn, 2002. "A Quantitative Analysis of Pricing Behavior in California's Wholesale Electricity Market During Summer 2000," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-35.
  3. Woolf, Fiona & Halpern, Jonathan, 2001. "Integrating independent power producers into emerging wholesale power markets," Policy Research Working Paper Series 2703, The World Bank.
  4. Witold Jerzy Henisz, 2004. "Political Institutions and Policy Volatility," Economics and Politics, Wiley Blackwell, vol. 16(1), pages 1-27, 03.
  5. R. David Gray & John Schuster, 1998. "The East Asian Financial Crisis : Fallout for Private Power Projects," World Bank Other Operational Studies 11541, The World Bank.
  6. Chang, Ha-Joon, 1997. "The Economics and Politics of Regulation," Cambridge Journal of Economics, Oxford University Press, vol. 21(6), pages 703-28, November.
  7. Stern, J., 2000. "Electricity and telecommunications regulatory institutions in small and developing countries," Utilities Policy, Elsevier, vol. 9(3), pages 131-157, September.
  8. Paul L. Joskow & Richard Schmalensee, 1988. "Markets for Power: An Analysis of Electrical Utility Deregulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262600188, December.
  9. Newbery, D., 2002. "Issues and Options for Restructuring Electricity Supply Industries," Cambridge Working Papers in Economics 0210, Faculty of Economics, University of Cambridge.
  10. Littlechild, S. C., 1992. "Competition and regulation in the British electricity industry," Utilities Policy, Elsevier, vol. 2(4), pages 270-275, October.
  11. Paul L. Joskow, 2001. "California's Electricity Crisis," NBER Working Papers 8442, National Bureau of Economic Research, Inc.
  12. Pablo Serra & Ronald Fischer, 2000. "Regulating the Electricity Sector in Latin America," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  13. Severin Borenstein & James B. Bushnell & Frank A. Wolak, 2002. "Measuring Market Inefficiencies in California's Restructured Wholesale Electricity Market," American Economic Review, American Economic Association, vol. 92(5), pages 1376-1405, December.
  14. Domah, P. & Pollitt, M.G., 2000. "The Restructuring and Privatisation of Electricity Distribution and Supply Businesses in England and Wales: A Social Cost Benefit Analysis," Cambridge Working Papers in Economics 0007, Faculty of Economics, University of Cambridge.
  15. Paul L. Joskow, 1998. "Electricity Sectors in Transition," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 25-52.
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Citations

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Cited by:
  1. See, Kok Fong & Coelli, Tim, 2013. "Estimating and decomposing productivity growth of the electricity generation industry in Malaysia: A stochastic frontier analysis," Energy Policy, Elsevier, vol. 62(C), pages 207-214.
  2. Gnansounou, Edgard & Dong, Jun, 2004. "Opportunity for inter-regional integration of electricity markets: the case of Shandong and Shanghai in East China," Energy Policy, Elsevier, vol. 32(15), pages 1737-1751, October.
  3. Jamasb, T. & Pollitt, M., 2005. "Deregulation and R&D in Network Industries: The Case of the Electricity Industry," Cambridge Working Papers in Economics 0533, Faculty of Economics, University of Cambridge.
  4. Chattopadhyay, Pradip, 2007. "Testing viability of cross subsidy using time-variant price elasticities of industrial demand for electricity: Indian experience," Energy Policy, Elsevier, vol. 35(1), pages 487-496, January.
  5. Paul L. Joskow, 2003. "Electricity Sector Restructuring And Competition - Lessons Learned," Working Papers 0314, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
  6. Hooper, Elizabeth & Medvedev, Andrei, 2009. "Electrifying integration: Electricity production and the South East Europe regional energy market," Utilities Policy, Elsevier, vol. 17(1), pages 24-33, March.
  7. Jamasb, T. & Mota, R. & Newbery, D. & Pollitt, M., 2004. "‘Electricity Sector Reform in Developing Countries: A Survey of Empirical Evidence on Determinants and Performance’," Cambridge Working Papers in Economics 0439, Faculty of Economics, University of Cambridge.
  8. Nilsson, Mats, 2007. "Red light for Green Paper: The EU policy on energy efficiency," Energy Policy, Elsevier, vol. 35(1), pages 540-547, January.
  9. See, Kok Fong & Coelli, Tim, 2014. "Total factor productivity analysis of a single vertically integrated electricity utility in Malaysia using a Törnqvist index method," Utilities Policy, Elsevier, vol. 28(C), pages 62-72.
  10. Gratwick, Katharine Nawaal & Eberhard, Anton, 2008. "Demise of the standard model for power sector reform and the emergence of hybrid power markets," Energy Policy, Elsevier, vol. 36(10), pages 3948-3960, October.
  11. Wagner Montoro Júnior & Arilton Teixeira, 2004. "Measuring Cost Efficiency in the Brazilian Electricity Distribution Sector," Brazilian Business Review, Fucape Business School, vol. 1(1), pages 63-73, January.
  12. Yu, W. & Pollitt, M.G., 2009. "Does Liberalisation cause more Electricity Blackouts? Evidence from a Global Study of Newspaper Reports," Cambridge Working Papers in Economics 0911, Faculty of Economics, University of Cambridge.

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