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Welfare Impacts of Electricity Generation Sector Reform in the Philippines

Author

Listed:
  • Toba, Natsuko

    (Asian Development Bank)

Abstract

This paper reports an empirical investigation into the welfare impacts of introduction of private sector participation into the Philippine electricity generation sector, through liberalization of the market for independent power producers (IPPs) during the power crisis of 1990–1993. This study uses a social cost and benefit analysis. The main benefits came from IPPs, which contributed to resolving the crisis and promoted economic and social development. Consumers and investors are net gainers, while the government lost and an air pollution cost was incurred. The paper concludes that reform with private sector participation increased social welfare.

Suggested Citation

  • Toba, Natsuko, 2003. "Welfare Impacts of Electricity Generation Sector Reform in the Philippines," ADB Economics Working Paper Series 44, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0044
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    More about this item

    Keywords

    economic development; electricity generation; independent power producers; Philippines; private sector participation;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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