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Governance-technology co-evolution and misalignment in the electricity industry

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  • Elina De Simone
  • Alessandro Sapio

Abstract

This paper explores some reasons why the alignment between governance and technology in infrastructures may be unstable or not easy to achieve. Focusing on the electricity industry, we claim that the decentralization of governance – an essential step towards a decentralized technical coordination - may be hampered by if deregulation magnifies behavioural uncertainties and asset specificities; and that in a technically decentralized system, political demand for centralized coordination may arise if the players are able to collude and lobby, and if such practices lead to higher electricity rates and lower efficiency. Our claims are supported by insights coming from approaches as diverse as transaction cost economics, the competence-based view of the firm, and political economy.

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File URL: http://economia.uniparthenope.it/ise/sito/DP/DES-DP_2011_06.pdf
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Bibliographic Info

Paper provided by D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy in its series Discussion Papers with number 6_2011.

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Date of creation: 16 Jun 2011
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Handle: RePEc:prt:dpaper:6_2011

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Keywords: Governance; Technology; Coherence; Competence; Transaction costs; Regulation.;

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