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Welfare Impacts of Electricity Generation Sector Reform in the Philippines

Author

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  • Toba, N.

Abstract

This paper reports an empirical investigation into the welfare impacts of an introduction of private sector participation into the Philippines electricity generation sector, by liberalizing the market for independent power producers (IPPs) during the power crisis of 1990-1993. This study uses a social cost and benefit analysis. The main benefits came from IPPs, who contributed to resolving the crisis, and promoted economic and social development. Consumers and investors are net gainers, while the Government lost and there was an air pollution cost. The paper concludes that the reform with private sector participation increased social welfare.

Suggested Citation

  • Toba, N., 2003. "Welfare Impacts of Electricity Generation Sector Reform in the Philippines," Cambridge Working Papers in Economics 0316, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:0316
    Note: CMI IO
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    File URL: http://www.econ.cam.ac.uk/electricity/publications/wp/ep23.pdf
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    Cited by:

    1. Pollitt, Michael, 2009. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Utilities Policy, Elsevier, vol. 17(1), pages 13-23, March.

    More about this item

    Keywords

    Electricity; Cost-benefit-analysis; Institutional change.;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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