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Regulatory Choices and Commitment � Challenges for Electricity Market Regulation in Kosovo

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  • Lars Kumkar

Abstract

This paper aims at describing the choices to be made in selecting and implementing a reform model for the electricity industry and to derive some implications for the situation in Kosovo. The paper argues that the appropriate reform model depends on the circumstances in the considered jurisdiction. Especially in small and less developed electricity systems a dilemma may emerge: the technical circumstances suggest the implementation of a model with few competitive elements, whereas political circumstances urge for a competition-oriented model. Hence, especially in small systems, a delicate trade-off emerges that significantly complicates the decisions to be made. This is obviously relevant for Kosovo. An international opening of KosovoÂ’s electricity market may provide a solution to the dilemma. This international opening encompasses a reduction of state sovereignty for electricity regulation and a wide-reaching market opening for private investors and electricity traders.

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1114.

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Length: 26 pages
Date of creation: Jun 2002
Date of revision:
Handle: RePEc:kie:kieliw:1114

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Related research

Keywords: Power sector; new institutional economics; liberalization; pool; privatization; regulation; restructuring; regulatory reform; single buyer; transition.;

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  1. Oliver Hart & John Moore, 1998. "Foundations of Incomplete Contracts," Harvard Institute of Economic Research Working Papers 1846, Harvard - Institute of Economic Research.
  2. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
  3. Paul L. Joskow, 2001. "California's Electricity Crisis," NBER Working Papers 8442, National Bureau of Economic Research, Inc.
  4. Paul L. Joskow, 2002. "Transaction Cost Economics, Antitrust Rules, and Remedies," Journal of Law, Economics and Organization, Oxford University Press, vol. 18(1), pages 95-116, April.
  5. Joskow, Paul L, 1996. "Introducing Competition into Regulated Network Industries: From Hierarchies to Markets in Electricity," Industrial and Corporate Change, Oxford University Press, vol. 5(2), pages 341-82.
  6. Christian von Hirschhausen & Petra Opitz, 2001. "Power Utility Re-regulation in East European and CIS Transformation Countries (1990-1999): An Institutional Interpretation," Discussion Papers of DIW Berlin 246, DIW Berlin, German Institute for Economic Research.
  7. Frank Bickenbach, 1999. "Regulierung und Wettbewerb im Bereich der Netzinfrastrukturen: Begründung, Regeln und Institutionen," Kiel Working Papers 910, Kiel Institute for the World Economy.
  8. Paul L. Joskow, 2006. "Incentive Regulation for Electricity Networks," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 4(2), pages 3-9, 07.
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