Caught Between Theory and Practice: Government, Market and Regulatory Failures in Electricity
AbstractThe world-wide electricity sector reforms of the early 1990s have revealed the complexities of introducing market driven reforms and making them work in network and infrastructure industries. This paper re-flects on the experience to date with the process and outcomes of market-based electricity reforms in less-developed, transition and developed economies. Evidence suggests similar problems facing the electricity sector of these countries though the contexts vary significantly. Many developing and developed economies continue to have investment inadequacy concerns and the need to balance economic efficiency, sustainability and social equity after more than two decades of experience with reforms. We also use case studies of three selected countries that in many respects represent the current state of the reform though they are rarely examined. Nepal, Belarus and Ireland are chosen as country-specific case studies for this purpose. We conclude that the changing dynamics of the electricity supply indus try (ESI) and policy objectives imply that reforms evolve continuously and thus remain work in progress making their success or failure a complex function of micro, macro, and institutional factors.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 1308.
Date of creation: 01 Mar 2013
Date of revision:
Contact details of provider:
Web page: http://www.econ.cam.ac.uk/index.htm
liberalisation; politics; market; reforms.;
Find related papers by JEL classification:
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
- P00 - Economic Systems - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-04 (All new papers)
- NEP-ENE-2013-06-04 (Energy Economics)
- NEP-IND-2013-06-04 (Industrial Organization)
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.:
- Malaguzzi Valeri, Laura, 2009. "Welfare and competition effects of electricity interconnection between Ireland and Great Britain," Energy Policy, Elsevier, vol. 37(11), pages 4679-4688, November.
- Erdogdu, Erkan, 2013.
"Implications of liberalization policies on government support to R&D: Lessons from electricity markets,"
Renewable and Sustainable Energy Reviews,
Elsevier, vol. 17(C), pages 110-118.
- Erdogdu, Erkan, 2013. "Implications of liberalization policies on government support to R&D: lessons from electricity markets," MPRA Paper 42148, University Library of Munich, Germany.
- Jamasb, Tooraj, 2006. "Between the state and market: Electricity sector reform in developing countries," Utilities Policy, Elsevier, vol. 14(1), pages 14-30, March.
- Laffont,Jean-Jacques, 2005.
"Regulation and Development,"
Cambridge University Press, number 9780521549486, October.
- Dieter Helm, 2009. "Infrastructure investment, the cost of capital, and regulation: an assessment," Oxford Review of Economic Policy, Oxford University Press, vol. 25(3), pages 307-326, Autumn.
- Nepal, R. & Jamasb, T., 2011.
"Reforming the Power Sector in Transition: Do Institutions Matter?,"
Cambridge Working Papers in Economics
1125, Faculty of Economics, University of Cambridge.
- Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming the power sector in transition: Do institutions matter?," Energy Economics, Elsevier, vol. 34(5), pages 1675-1682.
- Littlechild, S. C., 1983. "The structure of telephone tariffs," International Journal of Industrial Organization, Elsevier, vol. 1(4), pages 365-377, December.
- Faye Steiner, 2001. "Regulation, industry structure and performance in the electricity supply industry," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 143-182.
- Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming small electricity systems under political instability: The case of Nepal," Energy Policy, Elsevier, vol. 40(C), pages 242-251.
- Jan Svejnar, 2002.
"Transition Economies: Performance and Challenges,"
Journal of Economic Perspectives,
American Economic Association, vol. 16(1), pages 3-28, Winter.
- Eva Niesten, 2006. "Regulatory Institutions And Governance Transformations In Liberalising Electricity Industries," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(3), pages 291-307, 09.
- Pollitt, M. G., 2012.
"The role of policy in energy transitions: lessons from the energy liberalisation era,"
Cambridge Working Papers in Economics
1216, Faculty of Economics, University of Cambridge.
- Pollitt, Michael G., 2012. "The role of policy in energy transitions: Lessons from the energy liberalisation era," Energy Policy, Elsevier, vol. 50(C), pages 128-137.
- Williamson, Oliver E, 1995. "Hierarchies, Markets and Power in the Economy: An Economic Perspective," Industrial and Corporate Change, Oxford University Press, vol. 4(1), pages 21-49.
- Anupama Sen and Tooraj Jamasb, 2012. "Diversity in Unity: An Empirical Analysis of Electricity Deregulation in Indian States," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
- de Nooij, Michiel, 2011. "Social cost-benefit analysis of electricity interconnector investment: A critical appraisal," Energy Policy, Elsevier, vol. 39(6), pages 3096-3105, June.
- Levy, Brian & Spiller, Pablo T, 1994. "The Institutional Foundations of Regulatory Commitment: A Comparative Analysis of Telecommunications Regulation," Journal of Law, Economics and Organization, Oxford University Press, vol. 10(2), pages 201-46, October.
- Joseph Stiglitz, 1998. "Distinguished Lecture on Economics in Government: The Private Uses of Public Interests: Incentives and Institutions," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 3-22, Spring.
- Jaime Millán, 2006. "Power Sector Reform in Latin America: Accomplishments, Failures and Challenges," IDB Publications 49558, Inter-American Development Bank.
- Leroy P. Jones & Pankaj Tandon & Ingo Vogelsang, 1990. "Selling Public Enterprises: A Cost/Benefit Methodology," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262600625, June.
- Guasch, Jose Luis & Laffont, Jean-Jacques & Straub, Stéphane, 2006.
"Renegotiation of Concession Contracts: a Theoretical Approach,"
Open Access publications from University of Toulouse 1 Capitole
http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- J. Guasch & Jean-Jacques Laffont & Stéphane Straub, 2006. "Renegotiation of Concession Contracts: A Theoretical Approach," Review of Industrial Organization, Springer, vol. 29(1), pages 55-73, September.
- Paul L. Joskow, 2008. "Lessons Learned from Electricity Market Liberalization," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 9-42.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb).
If references are entirely missing, you can add them using this form.