IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Electricity Industry Reform Paradigm in the European Union: Testing the Impact on Consumers

  • Carlo Fiorio

    (University of Milan)

  • Massimo Florio

    (University of Milan)

  • Raffaele Doronzo

    (University of Milan)

The standard electricity industry reform paradigm in several EU countries since the 1990s includes privatization, unbundling, liberalization. While the implementation and design of reforms widely differs across the EU, the European Commission insists on a rather unified approach, aiming at the full opening of the internal market. Privatization neither is a necessary pre-requisite of liberalization, nor it is mentioned in the EU electricity market directives. Many economists, however, believe that public ownership can be an impediment to other reforms, and that it leads to production inefficiency. To test the latter question and the reform paradigm in general, as captured by the regulatory indicators, we consider electricity prices and survey data on consumer satisfaction in the EU-15. Our empirical findings reject the prediction that privatization leads to lower prices, or to increased consumer satisfaction. Moreover, country specific features tend to have a high explanatory power, and the progress toward the reform paradigm is not systematically associated with lower prices and higher consumers satisfaction. We discuss possible interpretations of our findings, suggest possible explanations, and some policy implications.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://services.bepress.com/unimi/economics/art23
Download Restriction: no

Paper provided by Universitá degli Studi di Milano in its series UNIMI - Research Papers in Economics, Business, and Statistics with number unimi-1066.

as
in new window

Length:
Date of creation: 04 Dec 2007
Date of revision:
Handle: RePEc:bep:unimip:unimi-1066
Note: oai:cdlib1:unimi-1066
Contact details of provider: Postal: Via Conservatorio 7 - 20122 Milano
Phone: +39 02 503 16486
Fax: +39 02 503 16475
Web page: http://services.bepress.com/unimi

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:bep:unimip:unimi-1066. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.