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Is regulatory quality related to industry performance? Evidence on telecommunications, gas and electricity in EU15

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  • Ugur, Mehmet

Abstract

This paper provides empirical evidence on ex ante and ex post indicators of regulatory quality and the relationship between those indicators and market performance in liberalised EU-15 network industries. We report a low level of regulatory independence and competence, a high level of cross-country variations in regulatory quality, and a prevalent absence of correlation between ex ante regulatory quality and ex post performance indicators. On the basis of these findings, we suggest that the design of national regulatory agencies (NRAs) in Europe is not optimal and may be conducive to regulatory ineffectiveness or outright regulatory failure. Nevertheless, the existence and strengthening of EU-level regulators could enable EU member states to reduce the risk of regulatory failure by encouraging coordination and adoption of best practice.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31365.

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Date of creation: Jul 2009
Date of revision: May 2009
Publication status: Published in Journal of Public Policy 3.29(2009): pp. 347-370
Handle: RePEc:pra:mprapa:31365

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Keywords: Economics of Regulation; European Public Policy; Regulatory Quality; European Network Industries.;

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  1. Giandomenico Majone, 2000. "The Credibility Crisis of Community Regulation," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 38(2), pages 273-302, 06.
  2. Laffont, Jean-Jacques & Martimort, David, 1994. "Separation of Regulators against Collusive Behavior," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 44, Institut d'Économie Industrielle (IDEI), Toulouse.
  3. William D. Berry, 1982. "Theories Of Regulatory Impact: The Roles Of The Regulator, The Regulated, And The Public," Review of Policy Research, Policy Studies Organization, Policy Studies Organization, vol. 1(3), pages 436-441, 02.
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