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

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Author Info
Lars Kumkar

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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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File URL: http://www.ifw-members.ifw-kiel.de/publications/regulatory-choices-and-commitment-challenges-for-electricity-market-regulation-in-kosovo/kap1114.pdf
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Publisher 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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Find related papers by JEL classification:
H4 - Public Economics - - Publicly Provided Goods
K2 - Law and Economics - - Regulation and Business Law
L5 - Industrial Organization - - Regulation and Industrial Policy
L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
P3 - Economic Systems - - Socialist Institutions and Their Transitions
Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

References listed on IDEAS
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  1. Paul L. Joskow, 2001. "California's Electricity Crisis," NBER Working Papers 8442, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Hart, Oliver & Moore, John, 1999. "Foundations of Incomplete Contracts," Review of Economic Studies, Blackwell Publishing, vol. 66(1), pages 115-38, January. [Downloadable!] (restricted)
    Other versions:
  3. 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.
  4. 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. [Downloadable!] (restricted)
    Other versions:
  5. 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. [Downloadable!]
  6. Baumol, W, & Ordover, J. & Willig, R., 1996. "Parity Pricing and Its Critics: Necessary Condition for Efficiency in Provision of Bottleneck Services to Competitors," Working Papers 96-33, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  7. Victor P. Goldberg, 1976. "Regulation and Administered Contracts," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 426-448, Autumn. [Downloadable!] (restricted)
  8. 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.
  9. 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. [Downloadable!]
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