Implications of liberalization policies on government support to R&D: lessons from electricity markets
AbstractSince the early 1980s, electricity industry reforms have been initiated in more than half of the countries in the world. Among the primary targets of these reform schemes, there has been an increase in efficiency of the sector; and it is implicitly assumed that government support to energy technology R&D will progress in line with the reform process as the former is required to sustain improved efficiency in the middle and long run. The paper reviews the relation between reform process in electricity markets and government support to energy R&D. Using panel data from 27 countries covering the period from 1974 to 2008, this study aims at finding out to what extent the expected correlation between reform process and government support to energy R&D has in practice been materialized so far. The findings suggest that, contrary to expectations, the progress toward electricity market reform is associated with reduced government support to a variety of energy R&D activities, which threatens sustainable efficiency improvements in the power industry.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42148.
Date of creation: Jan 2013
Date of revision:
Publication status: Published in Renewable and Sustainable Energy Reviews 1.17(2013): pp. 110-118
Economics of Regulation and Liberalization; Research and Development; Government Policy; Electricity Industry; Panel Data Modeling;
Other versions of this item:
- 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.
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-03 (All new papers)
- NEP-CWA-2012-11-03 (Central & Western Asia)
- NEP-ENE-2012-11-03 (Energy Economics)
- NEP-INO-2012-11-03 (Innovation)
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.:
- Dooley, J J, 1998. "Unintended consequences: energy R&D in a deregulated energy market," Energy Policy, Elsevier, vol. 26(7), pages 547-555, June.
- Calderini, Mario & Garrone, Paola, 2001. "Liberalisation, industry turmoil and the balance of R&D activities," Information Economics and Policy, Elsevier, vol. 13(2), pages 199-230, June.
- Jamasb, Tooraj & Newbery, David & Pollitt, Michael, 2005. "Core indicators for determinants and performance of the electricity sector in developing countries," Policy Research Working Paper Series 3599, The World Bank.
- Jamasb, Tooraj & Nuttall, William J. & Pollitt, Michael, 2008. "The case for a new energy research, development and promotion policy for the UK," Energy Policy, Elsevier, vol. 36(12), pages 4610-4614, December.
- Gratwick, Katharine Nawaal & Eberhard, Anton, 2008. "Demise of the standard model for power sector reform and the emergence of hybrid power markets," Energy Policy, Elsevier, vol. 36(10), pages 3948-3960, October.
- Jamasb, Tooraj & Pollitt, Michael, 2008. "Liberalisation and R&D in network industries: The case of the electricity industry," Research Policy, Elsevier, vol. 37(6-7), pages 995-1008, July.
- Aggarwal, Aradhna, 2000. "Deregulation, technology imports and in-house R&D efforts: an analysis of the Indian experience," Research Policy, Elsevier, vol. 29(9), pages 1081-1093, December.
- Nepal, Rabindra & Jamasb, Tooraj, 2013.
"Caught Between Theory and Practice: Government, Market and Regulatory Failures in Electricity,"
Cambridge Working Papers in Economics
1308, Faculty of Economics, University of Cambridge.
- Rabindra, Nepal & Tooraj, Jamasb, 2013. "Caught Between Theory and Practice: Government, Market, and Regulatory Failure in Electricity Sector Reforms," SIRE Discussion Papers 2013-22, Scottish Institute for Research in Economics (SIRE).
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