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The Public Economics of Electricity Policy with Philippine Applications

Author

Listed:
  • Majah-Leah Ravago

    (Assistant Professor at the University of the Philippines and Program Director of the Energy Policy and Development Program (EPDP) of the Philippines)

  • James Roumasset

    (Emeritus Professor of Economics (pending) at the University of Hawaii, Manoa)

Abstract

Electricity policy in many countries is charged with multiple objectives including affordability, sustainability, inclusivity, and renewability. Unless these objectives can be reconciled, the pursuit of one will detract from the pursuit of another. We provide a framework for culling some objectives and reconciling other by extending the traditional view of efficiency. Philippine power policies are characterized and evaluated with respect to conflicting objectives and the problem of incomplete deregulation. We also make preliminary suggestions regarding investment planning for generation and transmission, including the suitability of short-cut metrics such as levelized and avoided costs and the prospects for increased competitiveness.

Suggested Citation

  • Majah-Leah Ravago & James Roumasset, 2016. "The Public Economics of Electricity Policy with Philippine Applications," Working Papers 201613, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:201613
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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_16-13.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ravago, Majah-Leah V. & Brucal, Arlan Zandro & Roumasset, James & Punongbayan, Jan Carlo, 2019. "The role of power prices in structural transformation: Evidence from the Philippines," Journal of Asian Economics, Elsevier, vol. 61(C), pages 20-33.
    2. Majah-Leah V. Ravago & Arlan Zandro I. Brucal & James Roumasset & Jan Carlo Punongbayan, 2019. "The Role of Electricity Prices in Structural Transformation: Evidence from the Philippines," Working Papers 2019-2, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    3. Clarete, Ramon, 2016. "The Value Added Tax and Red Tape: What Contributes More to Electricity Tariffs in the Philippines," MPRA Paper 87727, University Library of Munich, Germany.
    4. Majah-Leah V. Ravago & James A. Roumasset, 2020. "COVID-19, Coal, and the Energy Transition in the Philippines," Department of Economics, Ateneo de Manila University, Working Paper Series 202009, Department of Economics, Ateneo de Manila University.

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    More about this item

    Keywords

    Electricity; renewable energy; excess burden; deregulation; competition; Philippines;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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