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New models of public ownership in energy

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  • Aoife Brophy Haney
  • Michael G. Pollitt

Abstract

The current challenges facing the energy sector cast doubt on the universal applicability of a wholly privately-owned, competitive and independently-regulated energy industry. In this paper, we discuss these challenges and ask why it is that they have led to the emergence of new forms of public ownership and involvement. We then explore six case studies to illustrate the variety of ownership models that have developed in response to the challenges of climate change, energy security, energy poverty and the uncertainty around electricity market reform. Our case studies show that public involvement can coexist with generally liberalised electricity markets, including at the retail market level. They also demonstrate that ‘public’ ownership can take a number of forms, including mutual ownership, consumer trusts, state ownership and municipal ownership. Public organisation is on its way back in but in many new forms with many different structures. The choice is no longer between full state ownership and full private ownership. The challenge is to maintain the benefits of both and to encourage innovation in new organisational forms.

Suggested Citation

  • Aoife Brophy Haney & Michael G. Pollitt, 2013. "New models of public ownership in energy," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(2), pages 174-192, March.
    • Handle: RePEc:taf:irapec:v:27:y:2013:i:2:p:174-192
    DOI: 10.1080/02692171.2012.734790
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    10. Vagliasindi, Maria, 2012. "Key drivers of PPPs in electricity generation in developing countries : cross-country evidence of switching between PPP investment in fossil fuel and renewable-based generation," Policy Research Working Paper Series 6118, The World Bank.
    11. Rajavuori, Mikko & Huhta, Kaisa, 2020. "Investment screening: Implications for the energy sector and energy security," Energy Policy, Elsevier, vol. 144(C).
    12. Elisa Borghi & Chiara Del Bo & Massimo Florio, 2016. "Institutions and Firms' Productivity: Evidence from Electricity Distribution in the EU," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(2), pages 170-196, April.
    13. Hyland, Marie, 2016. "Restructuring European electricity markets – A panel data analysis," Utilities Policy, Elsevier, vol. 38(C), pages 33-42.
    14. Piotr Żuk & Paweł Żuk, 2021. "Increasing Energy Prices as a Stimulus for Entrepreneurship in Renewable Energies: Ownership Structure, Company Size and Energy Policy in Companies in Poland," Energies, MDPI, vol. 14(18), pages 1-19, September.
    15. George C Homsy, 2016. "Powering sustainability: Municipal utilities and local government policymaking," Environment and Planning C, , vol. 34(6), pages 1076-1094, September.
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    17. Fiorio, Carlo V. & Florio, Massimo, 2013. "Electricity prices and public ownership: Evidence from the EU15 over thirty years," Energy Economics, Elsevier, vol. 39(C), pages 222-232.
    18. Somosi, Sarolta, 2012. "Winners or losers?: State measures in crisis management and the energy markets," MPRA Paper 40370, University Library of Munich, Germany.
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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
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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