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Socialism For Red States In The Electric Utility Industry

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  • Richard Schmalensee

Abstract

The Tennessee Valley Authority (TVA) and the other federal electric utilities were created under Democratic administrations, and their service territories were initially bluer (that is, more Democratic-leaning) than average. These subsidized enterprises sell cheap power preferentially to non-investor-owned distributors, so such utilities are more prominent where the federal utilities are important sellers. The political map of the United States has changed dramatically since the federal utilities were created. The federal utilities and non-investor-owned distributors are now more important on average in red (that is, Republican-leaning) states than in blue ones. Interest has trumped ideology: Republican policy-makers strongly opposed to socialism in principle seem happy with the important role of government enterprises in the U.S. electric utility industry.

Suggested Citation

  • Richard Schmalensee, 2016. "Socialism For Red States In The Electric Utility Industry," Journal of Competition Law and Economics, Oxford University Press, vol. 12(3), pages 477-494.
  • Handle: RePEc:oup:jcomle:v:12:y:2016:i:3:p:477-494.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhw023
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    More about this item

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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