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Restructuring European Electricity Markets ? A Panel Data Analysis

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  • Hyland, Marie

Abstract

This paper looks at the restructuring of European electricity markets that has been taking place since the 1990s. This liberalisation process, driven largely by EU legislation aiming to create a single market for electricity, has led to significant changes in how electricity markets in member states operate. In this paper I estimate the impact of the restructuring process on electricity prices for industrial consumers. Much of the literature to date estimating the impacts of electricity market restructuring fails to take into account the potential endogeneity of the reform process. By using dynamic panel-data techniques, I aim to overcome this shortcoming. I find that once the potential endogeneity of reforms is accounted for, restructuring has, as of yet, had no statistically significant impact on electricity prices. This research highlights the importance of accounting for dynamics and endogeneity before drawing inferences about the results of EU electricity-market reform.

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  • Hyland, Marie, 2015. "Restructuring European Electricity Markets ? A Panel Data Analysis," Papers WP504, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:wp504
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    References listed on IDEAS

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    Cited by:

    1. da Silva, Patrícia Pereira & Cerqueira, Pedro A., 2017. "Assessing the determinants of household electricity prices in the EU: a system-GMM panel data approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 1131-1137.
    2. repec:eee:ejores:v:262:y:2017:i:1:p:347-360 is not listed on IDEAS
    3. Gaffney, F. & Deane, J.P. & Gallachóir, B.P.Ó, 2017. "A 100 year review of electricity policy in Ireland (1916–2015)," Energy Policy, Elsevier, vol. 105(C), pages 67-79.
    4. repec:bla:annpce:v:89:y:2018:i:4:p:599-622 is not listed on IDEAS
    5. Bastianin, Andrea & Castelnovo, Paolo & Florio, Massimo, 2018. "Evaluating regulatory reform of network industries: a survey of empirical models based on categorical proxies," Utilities Policy, Elsevier, vol. 55(C), pages 115-128.
    6. repec:eee:enepol:v:129:y:2019:i:c:p:1253-1260 is not listed on IDEAS
    7. Andrea Bastianin & Paolo Castelnovo & Massimo Florio, 2017. "The Empirics of Regulatory Reforms Proxied by Categorical Variables: Recent Findings and Methodological Issues," Working Papers 2017.22, Fondazione Eni Enrico Mattei.
    8. repec:eee:enepol:v:123:y:2018:i:c:p:514-524 is not listed on IDEAS
    9. repec:eee:juipol:v:54:y:2018:i:c:p:96-106 is not listed on IDEAS
    10. Asane-Otoo, Emmanuel, 2016. "Competition policies and environmental quality: Empirical analysis of the electricity sector in OECD countries," Energy Policy, Elsevier, vol. 95(C), pages 212-223.

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