IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v94y2025ics0957178725000141.html
   My bibliography  Save this article

Do independent regulatory authorities impact electricity supply in Sub-Saharan Africa?

Author

Listed:
  • Kogueda, Franky BA
  • Bassongui, Nassibou
  • Bendoma, Marius

Abstract

This article assesses the impact of independent regulation on electricity supply, using data from 40 Sub-Saharan African countries over the period 2000 to 2021. Based on the propensity score matching method, we estimate the average effect of independent regulation. The results show that independent regulation positively impacts electricity generation, access to electricity, and service demand coverage. However, we find that independent regulatory authorities have no significant effect on electricity losses. A heterogeneity analysis by regional sub-blocks highlights that independent regulation enhances the allocative efficiency of electricity services in rural areas, particularly in countries experiencing social instability and insecurity. Conversely, independent regulatory authorities do not significantly affect the productive efficiency of electricity operators. These findings support the development of regulatory frameworks through the establishment of independent regulatory bodies, rural electrification initiatives, and competition authorities.

Suggested Citation

  • Kogueda, Franky BA & Bassongui, Nassibou & Bendoma, Marius, 2025. "Do independent regulatory authorities impact electricity supply in Sub-Saharan Africa?," Utilities Policy, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:juipol:v:94:y:2025:i:c:s0957178725000141
    DOI: 10.1016/j.jup.2025.101899
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178725000141
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2025.101899?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Bohlmann, J.A. & Inglesi-Lotz, R., 2021. "Examining the determinants of electricity demand by South African households per income level," Energy Policy, Elsevier, vol. 148(PA).
    2. 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.
    3. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    4. Anastassios Gentzoglanis, 2013. "Regulation of the electricity industry in Africa," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 4(1), pages 34-57, April.
    5. Imam, Mahmud I. & Jamasb, Tooraj & Llorca, Manuel, 2019. "Sector reforms and institutional corruption: Evidence from electricity industry in Sub-Saharan Africa," Energy Policy, Elsevier, vol. 129(C), pages 532-545.
    6. Anastassios Gentzoglanis, 2013. "Regulation of the electricity industry in Africa," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 4(1), pages 34-57, April.
    7. Steve Cicala, 2022. "Imperfect Markets versus Imperfect Regulation in US Electricity Generation," American Economic Review, American Economic Association, vol. 112(2), pages 409-441, February.
    8. repec:aer:wpaper:393 is not listed on IDEAS
    9. de Halleux, Morgane & Estache, Antonio & Serebrisky, Tomas, 2020. "Governance choices and policy outcomes in the Latin American and caribbean electricity sector," Utilities Policy, Elsevier, vol. 67(C).
    10. Michael L. Polemis & Markos Tselekounis, 2021. "Threshold effects in the regulation-innovation nexus: evidence from the telecommunications industry," Journal of Regulatory Economics, Springer, vol. 60(1), pages 74-93, August.
    11. repec:idb:brikps:82983 is not listed on IDEAS
    12. Stern, Jon, 2014. "The British utility regulation model: Its recent history and future prospects," Utilities Policy, Elsevier, vol. 31(C), pages 162-172.
    13. Gregory, Julian, 2020. "Governance, scale, scope: A review of six South African electricity generation infrastructure megaprojects," Utilities Policy, Elsevier, vol. 66(C).
    14. Liu, Yingqi, 2017. "Demand response and energy efficiency in the capacity resource procurement: Case studies of forward capacity markets in ISO New England, PJM and Great Britain," Energy Policy, Elsevier, vol. 100(C), pages 271-282.
    15. Asantewaa, Adwoa & Jamasb, Tooraj & Llorca, Manuel, 2023. "Electricity sector reforms and cost efficiency: The case of small electricity systems in Sub-Sahara Africa," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 880-893.
    16. Kumar, Shashwat, 2022. "Taking root: Independent Regulatory Agency model of regulation in Indian electricity sector," Energy Policy, Elsevier, vol. 164(C).
    17. Ibarra-Yunez, Alejandro, 2015. "Energy reform in Mexico: Imperfect unbundling in the electricity sector," Utilities Policy, Elsevier, vol. 35(C), pages 19-27.
    18. Luis Andres & José Luis Guasch & Sebastián Lopez Azumendi, 2009. "Regulatory Governance and Sector Performance: Methodology and Evaluation for Electricity Distribution in Latin America," Chapters, in: Claude Ménard & Michel Ghertman (ed.), Regulation, Deregulation, Reregulation, chapter 6, Edward Elgar Publishing.
    19. Sheoli Pargal & Kristy Mayer, 2014. "Governance of Indian State Power Utilities : An Ongoing Journey," World Bank Publications - Books, The World Bank Group, number 20397.
    20. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    21. Adwoa Asantewaa & Tooraj Jamasb & Manuel Llorca, 2022. "Electricity Sector Reform Performance in Sub-Saharan Africa: A Parametric Distance Function Approach," Energies, MDPI, vol. 15(6), pages 1-29, March.
    22. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    23. Srivastava, Govind & Kathuria, Vinish, 2020. "Impact of corporate governance norms on the performance of Indian utilities," Energy Policy, Elsevier, vol. 140(C).
    24. Cambini, Carlo & Franzi, Donata, 2013. "Independent regulatory agencies and rules harmonization for the electricity sector and renewables in the Mediterranean region," Energy Policy, Elsevier, vol. 60(C), pages 179-191.
    25. Makochekanwa, Albert, 2020. "The Impact of Regulations on Investment in Mobile Telephone Infrastructure in Southern African Development Community Countries," Working Papers e3c776f3-5965-40ec-862a-a, African Economic Research Consortium.
    26. Pauline Anaman & Jennifer Boca & Tenele Habangaan & Akua Chrappah Ayippey, 2024. "Power Sector Regulation in Africa in an Energy Transition Era," Advances in African Economic, Social and Political Development, in: Ishmael Ackah & Charly Gatete (ed.), Energy Regulation in Africa, pages 185-204, Springer.
    27. Paul L. Joskow, 1997. "Restructuring, Competition and Regulatory Reform in the U.S. Electricity Sector," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 119-138, Summer.
    28. Gratwick, Katharine Nawaal & Eberhard, Anton, 2008. "Demise of the standard model for power sector reform and the emergence of hybrid power markets," Energy Policy, Elsevier, vol. 36(10), pages 3948-3960, October.
    29. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    30. Amin, Sakib & Jamasb, Tooraj & Nepal, Rabindra, 2021. "Regulatory reform and the relative efficacy of government versus private investment on energy consumption in South Asia," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 421-433.
    31. Crispin Bobio & Ishmael Ackah & Dramani Bukari & John A. Jinapor & Vida Aba Essuman, 2024. "The Political Economy of Electricity Sector Regulation in Africa: A Comparative Analysis," Advances in African Economic, Social and Political Development, in: Ishmael Ackah & Charly Gatete (ed.), Energy Regulation in Africa, pages 53-77, Springer.
    32. Brajesh Mishra & Avanish Kumar, 2021. "How does regulatory framework impact sectoral performance? A systematic literature review," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 72(5), pages 1419-1444, December.
    33. Asantewaa, Adwoa & Jamasb, Tooraj & Llorca, Manuel, 2022. "Reforming Small Electricity Systems: Market Design and Competition," Working Papers 12-2022, Copenhagen Business School, Department of Economics.
    34. Twesigye, Peter, 2022. "Structural, governance, & regulatory incentives for improved utility performance: A comparative analysis of electric utilities in Tanzania, Kenya, and Uganda," Utilities Policy, Elsevier, vol. 79(C).
    35. Ahmed, Tauqir & Bhatti, Arshad Ali, 2019. "Do power sector reforms affect electricity prices in selected Asian countries?," Energy Policy, Elsevier, vol. 129(C), pages 1253-1260.
    36. Giraudet, Louis-Gaëtan, 2020. "Energy efficiency as a credence good: A review of informational barriers to energy savings in the building sector," Energy Economics, Elsevier, vol. 87(C).
    37. Ivie Ehanmo & Oghosa Erhahon, 2024. "Legal and Regulatory Pathways for Sub-Saharan Africa’s Energy Access and Energy Transition Agenda," Advances in African Economic, Social and Political Development, in: Ishmael Ackah & Charly Gatete (ed.), Energy Regulation in Africa, pages 107-129, Springer.
    38. debbichi sami, 2011. "Independence of the regulator and performance of mobile phones in the arab countries: econometric application," Economics Bulletin, AccessEcon, vol. 31(4), pages 1-43.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adwoa Asantewaa & Tooraj Jamasb & Manuel Llorca, 2022. "Electricity Sector Reform Performance in Sub-Saharan Africa: A Parametric Distance Function Approach," Energies, MDPI, vol. 15(6), pages 1-29, March.
    2. Ghosh, Ranjan & Kathuria, Vinish, 2016. "The effect of regulatory governance on efficiency of thermal power generation in India: A stochastic frontier analysis," Energy Policy, Elsevier, vol. 89(C), pages 11-24.
    3. Alexander Hill, 2023. "Price freezes and gas pass-through: an estimation of the price impact of electricity market restructuring," Journal of Regulatory Economics, Springer, vol. 63(1), pages 87-116, April.
    4. Twesigye, Peter, 2022. "Structural, governance, & regulatory incentives for improved utility performance: A comparative analysis of electric utilities in Tanzania, Kenya, and Uganda," Utilities Policy, Elsevier, vol. 79(C).
    5. Lisa Bagnoli & Salvador Bertomeu-Sanchez & Antonio Estache & Maria Vagliasindi, 2023. "Does the ownership of utilities matter for social outcomes? A survey of the evidence for developing countries," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 26(1), pages 24-43, January.
    6. Erkan Erdogdu, 2014. "The Political Economy of Electricity Market Liberalization: A Cross-country Approach," The Energy Journal, , vol. 35(3), pages 91-128, July.
    7. Kathuria, Vinish, 2021. "Impact of institutional reforms on the performance of distribution utilities in India – A dynamic panel data analysis," Energy Policy, Elsevier, vol. 158(C).
    8. Asantewaa, Adwoa & Jamasb, Tooraj & Llorca, Manuel, 2022. "Reforming Small Electricity Systems: Market Design and Competition," Working Papers 12-2022, Copenhagen Business School, Department of Economics.
    9. David P. Brown & David E. M. Sappington, 2023. "Designing Incentive Regulation in the Electricity Sector," Working Papers 2023-10, University of Alberta, Department of Economics.
    10. Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    11. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    12. Georges Dionne, 2003. "The Foundationsof Banks' Risk Regulation: A Review of Literature," THEMA Working Papers 2003-46, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    13. Nancy L. Rose, 2014. "Learning from the Past: Insights for the Regulation of Economic Activity," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 1-23, National Bureau of Economic Research, Inc.
    14. Ba, Lika & Gasmi, Farid, 2011. "To what extent do infrastructure and financial sectors reforms interplay? Evidence from panel data on the power sector in developing countries," IDEI Working Papers 692, Institut d'Économie Industrielle (IDEI), Toulouse.
    15. Miguel Boucinha & Carlo Altavilla & Frank Smets & José-Luis Peydró, 2019. "Banking Supervision, Monetary Policy and Risk-Taking: Big Data Evidence from 15 Credit Registers," Working Papers 1137, Barcelona School of Economics.
    16. Liam Wren-Lewis, 2015. "Do Infrastructure Reforms Reduce the Effect of Corruption? Theory and Evidence from Latin America and the Caribbean," The World Bank Economic Review, World Bank, vol. 29(2), pages 353-384.
    17. Azreen Benazir Abdullah Ahmed & Sakib Amin & Charles Harvie & Rabindra Nepal, 2021. "The Nexus Between Energy and Trade in South Asia: A Panel Analysis," Economic Papers, The Economic Society of Australia, vol. 40(2), pages 134-151, June.
    18. Bastianin, Andrea & Castelnovo, Paolo & Florio, Massimo, 2018. "Evaluating regulatory reform of network industries: a survey of empirical models based on categorical proxies," Utilities Policy, Elsevier, vol. 55(C), pages 115-128.
    19. Almer, Christian & Winkler, Ralph, 2017. "Analyzing the effectiveness of international environmental policies: The case of the Kyoto Protocol," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 125-151.
    20. Polemis, Michael L., 2016. "New evidence on the impact of structural reforms on electricity sector performance," Energy Policy, Elsevier, vol. 92(C), pages 420-431.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:94:y:2025:i:c:s0957178725000141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.