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Captured Energy Market Operation and Liberalization Efforts

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  • Anna Dimitrova

Abstract

The article examines several developments in the energy sector in Bulgaria through the prism of the “capture” theory (“interest groups” theory), and regulatory capture in particular. It argues that captured state interventions or the lack thereof lead to inefficiencies in the utilities and to socially inferior results, especially in a highly concentrated market, intensive public ownership and questionable NRA independence context. They are liable to hinder effective market liberalisation and green transition efforts.

Suggested Citation

  • Anna Dimitrova, 2021. "Captured Energy Market Operation and Liberalization Efforts," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 19-31.
    • Handle: RePEc:bas:econst:y:2021:i:7:p:19-31
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    File URL: https://www.iki.bas.bg/Journals/EconomicStudies/2021/2021-7/2_Anna-Dimitrova_f-F.pdf
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    References listed on IDEAS

    as
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    3. Jean-Jacques Laffont & Jean Tirole, 1991. "The Politics of Government Decision-Making: A Theory of Regulatory Capture," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1089-1127.
    4. Dal Bo, Ernesto & Rossi, Martin A., 2007. "Corruption and inefficiency: Theory and evidence from electric utilities," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 939-962, June.
    5. Richard A. Posner, 1974. "Theories of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 335-358, Autumn.
    6. van Koten, S. & Ortmann, A., 2008. "The unbundling regime for electricity utilities in the EU: A case of legislative and regulatory capture?," Energy Economics, Elsevier, vol. 30(6), pages 3128-3140, November.
    7. A. W. Dnes & J. S. Seaton, 1999. "The regulation of electricity: results from an event study," Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 609-618.
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    More about this item

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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