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Electricity sector reform in developing countries : a survey of empirical evidence on determinants and performance

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Author Info
Jamasb, Tooraj
Mota, Raffaella
Newbery, David
Pollitt, Michael

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Abstract

Driven by ideology, economic reasoning, and early success stories, vast amounts of financial resources and effort have been spent on reforming infrastructure industries in developing countries. It is therefore important to examine whether evidence supports the logic of reforms. The authors review the empirical evidence on electricity reform in developing countries. They find that country institutions and sector governance play an important role inthe success and failure of reform. And reforms also appear to have increased operating efficiency and expanded access to urban customers. However, the reforms have to a lesser degree passed on efficiency gains to customers, tackled distributional effects, and improved rural access. Moreover, some of the literature is not methodologically robust and on par with general development economics literature. Further, findings on some issues are limited and inconclusive, while other important areas are yet to be addressed. Until we know more, implementation of reforms will be more based on ideology and economic theory rather than solid economic evidence.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3549.

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Date of creation: 01 Mar 2005
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Handle: RePEc:wbk:wbrwps:3549

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Keywords: Environmental Economics&Policies; Enterprise Development&Reform; Electric Power; Children and Youth; Public Sector Economics&Finance;

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Full references

Cited by:
(explanations, 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.)

  1. Yin-Fang Zhang & David Parker & Colin Kirkpatrick, 2008. "Electricity sector reform in developing countries: an econometric assessment of the effects of privatization, competition and regulation," Journal of Regulatory Economics, Springer, vol. 33(2), pages 159-178, April. [Downloadable!] (restricted)
    Other versions:
  2. Carlos Pestana Barros, 2008. "Identification of Segments of Thermo Energy Plants with a Latent Class Model," Working Papers 2008/11, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
    Other versions:
  3. Pollitt, M., 2007. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Cambridge Working Papers in Economics 0756, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
  4. Eduardo Martínez Chombo, 2009. "Sources of Over-Costs and Distortions in State-Owned Utilities in Mexico," Working Papers 2009-07, Banco de México. [Downloadable!]
  5. Tooraj Jamasb & Michael Pollitt, 2005. "Electricity Market Reform in the European Union - Review of Progress toward Liberalization & Integration," Working Papers 0503, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
    Other versions:
  6. Antonio Estache & Beatriz Tovar & Lourdes Trujillo, 2007. "Are African Electricity Distribution Companies Efficient? Evidence from the Southern African Countries," City University Economics Discussion Papers 07/13, Department of Economics, City University, London. [Downloadable!]
  7. Pollitt, M., 2007. "The arguments for and against ownership unbundling of energy transmission networks," Cambridge Working Papers in Economics 0737, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
  8. Jamasb, T. & Pollitt, M., 2005. "Deregulation and R&D in Network Industries: The Case of the Electricity Industry," Cambridge Working Papers in Economics 0533, Faculty of Economics, University of Cambridge. [Downloadable!]
  9. 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. [Downloadable!]
  10. Annez, Patricia Clarke, 2006. "Urban infrastructure finance from private operators : what have we learned from recent experience ?," Policy Research Working Paper Series 4045, The World Bank. [Downloadable!]
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