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Consumer protection through prices: an analysis of the energetic sector in European Union countries

Author

Listed:
  • Codruţa Mare

    (Babes-Bolyai University of Cluj-Napoca, România)

  • Simona Laura Dragoş

    (Babes-Bolyai University of Cluj-Napoca, România, L.E.O., France)

  • Dan Tudor Lazăr

    (Babes-Bolyai University of Cluj-Napoca, România)

  • Cristian Mihai Dragoş

    (Babes-Bolyai University of Cluj-Napoca, România, L.E.O., France)

Abstract

Services of general economic interest (SGEI) are usually offered on markets characterized by monopoly, oligopoly, governmental or local authorities control or other forms of market imperfection. Consequently, issues related to consumer protection also present some particularities. In the energetic sector, the product offered (electricity) is absolutely homogeneous, allowing only consumer protection through price. Our study analyzed the presence of this phenomenon in the 27 countries of the European Union. Data was collected from official institutions, such as the World Bank, Europe's Energy Portal and the National Institutes of Statistics of the member states. Based on OLS regressions we demonstrated the existence of price-based protection for domestic consumers at EU level. Prices are regulated in such a way as to be correlated with the average wage. As an additional argument, we demonstrated that the energy price for industrial consumers follows a different formation mechanism, with main influence factor the energy import dependence.

Suggested Citation

  • Codruţa Mare & Simona Laura Dragoş & Dan Tudor Lazăr & Cristian Mihai Dragoş, 2013. "Consumer protection through prices: an analysis of the energetic sector in European Union countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(34), pages 327-341, June.
    • Handle: RePEc:aes:amfeco:v:15:y:2013:i:34:p:327-341
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    References listed on IDEAS

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    2. Miguel Pérez de Arce and Enzo Sauma, 2016. "Comparison of Incentive Policies for Renewable Energy in an Oligopolistic Market with Price-Responsive Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
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    More about this item

    Keywords

    services of general economic interest; consumer protection by price; energy dependence.;
    All these keywords.

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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