The reform of network industries, privatisation and consumers’ welfare: evidence from the EU15
AbstractIn the past two decades privatisation and liberalisation of network industries providing services of general economic interest (SGEI), have been particularly significant in the European Union. Wide variations around a common policy trend can, however, be observed across countries and sectors. We focus on electricity, gas and telecoms sectors and study the welfare effects of reforms on users using both subjective data on consumers’ perception of utility prices and data on average prices paid. Our empirical findings for EU15 in the three industries we consider, are mixed. Privatisation per se consistently leads to higher consumer prices. There are, however, beneficial effects of market opening reforms, but often smaller and more uncertain than we would have expected. In terms of perceptions, consumers are happier with the price they pay under public ownership while the evidence is mixed for the other reforms. Thus, objective and subjective evidence are broadly mutually consistent, as far as privatisation is concerned. These findings are entirely new and tend to reject the earlier, more optimistic views by the European Commission on the outcomes of the reforms.
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 Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2009-41.
Date of creation: 16 Oct 2009
Date of revision:
Liberalisation; privatisation; consumersâ€™ satisfaction; welfare; electricity; gas; telecoms;
Other versions of this item:
- Carlo Fiorio & Massimo Florio, 2009. "The reform of network industries, privatisation and consumers’ welfare: evidence from the EU15," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1088, Universitá degli Studi di Milano.
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
- L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jan Bena & Peter Ondko & Evangelia Vourvachaki, 2011.
"Productivity Gains from Services Liberalization in Europe,"
CERGE-EI Working Papers
wp452, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Bena Jan & Ondko Peter & Vourvachaki Evangelia, 2011. "Productivity Gains from Services Liberalization in Europe," EERC Working Paper Series 11/15e, EERC Research Network, Russia and CIS.
- Judith Clifton & Daniel Díaz‐Fuentes & Marcos Fernández‐Gutiérrez & Julio Revuelta, 2011.
"Is Market‐Oriented Reform Producing A ‘Two‐Track’ Europe? Evidence From Electricity And Telecommunications,"
Annals of Public and Cooperative Economics,
Wiley Blackwell, vol. 82(4), pages 495-513, December.
- Clifton, Judith & Díaz-Fuentes, Daniel & Fernández Gutiérrez, Marcos & Revuelta, Julio, 2011. "Is Market-Oriented Reform Producing a “Two-Track” Europe? Evidence from Electricity and Telecommunications," MPRA Paper 33018, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (DEMM Working Papers).
If references are entirely missing, you can add them using this form.