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Liberalizing markets, liberalizing welfare? Economic reform and social regulation in the EU's electricity regime

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  • Haber, Hanan

Abstract

This article argues that the European Union (EU) is promoting a liberal model of welfare through social regulation. Focusing on the liberalization and regulation of the electricity sector, the article asks how and for what reasons social protection of vulnerable consumers was introduced into this sector, and what kind of welfare policy this represents. This article shows that social measures grew substantially between the second and third directives on electricity sector liberalization (2005–2009), advanced by the European Parliament and reluctantly adopted by the Commission. This development runs counter to our understanding of electricity sector reform as focused primarily on liberalization, competition and efficiency. It is argued that the introduction of social protection advanced the process of economic reform, even when the measures introduced were in themselves inefficient. This social regulation, however, not only reflects a liberal, targeted and minimal understanding of welfare, but also pushes social policy in member states in this same direction.

Suggested Citation

  • Haber, Hanan, 2018. "Liberalizing markets, liberalizing welfare? Economic reform and social regulation in the EU's electricity regime," LSE Research Online Documents on Economics 87670, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:87670
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    File URL: http://eprints.lse.ac.uk/87670/
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    Cited by:

    1. Yehuda Porath & Tal Sadeh, 2022. "National Debt Management Autonomy and National Debt Maturity at Issue," Bank of Israel Working Papers 2022.14, Bank of Israel.
    2. Tal Sadeh & Yehuda Porath, 2020. "Autonomous agencies and relational contracts in government bond issues," Regulation & Governance, John Wiley & Sons, vol. 14(4), pages 741-763, October.

    More about this item

    Keywords

    Electricity; liberalization; regulation; utilities; welfare;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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