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Analysis of the welfare implications of power-sector restructuring in West Bengal, India

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  • Saha, Debalina
  • Bhattacharya, Rabindra N.

Abstract

This paper analyses the welfare implications of power-sector reform in a situation where public-sector and private-sector utilities co-exist, based on restructuring of the power-sector in India's West Bengal state. The fifteen-year review period covers parts of both pre-restructuring and post-restructuring. The panel data analysis spanning four consumer categories indicates a negative impact of system de-integration on welfare due to the rise in transmission costs and increased tariff rates that result in a fall in both consumer and producer surplus. The paper also studies the effect of the reform on the capacity of supply to meet demand.

Suggested Citation

  • Saha, Debalina & Bhattacharya, Rabindra N., 2019. "Analysis of the welfare implications of power-sector restructuring in West Bengal, India," Utilities Policy, Elsevier, vol. 56(C), pages 62-71.
    • Handle: RePEc:eee:juipol:v:56:y:2019:i:c:p:62-71
    DOI: 10.1016/j.jup.2018.11.004
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    More about this item

    Keywords

    Welfare implication; Power-sector reliability; Restructuring of power utility;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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