IDEAS home Printed from https://ideas.repec.org/p/ila/ilades/inv124.html
   My bibliography  Save this paper

Open-Access Issues in the Chilean Telecommunications and Electricity Sectors

Author

Abstract

Este trabajo analiza la crisis eléctrica de 1998-1999. Su principal conclusión es que el diagnóstico habitual que sostiene que ocurrió porque las empresas no invirtieron y el regulador no tenía atribuciones, es equivocado. A pesar de la peor sequía del siglo y de la falla de la central Nehuenco, los cortes de energía y el déficit agregado de 450 GWh se podrían haber evitado si el agua embalsada se hubiese manejado recientemente, o bien los reguladores hubiesen usado sus atribuciones para hacer funcionar el sistema de precios, o si el ejecutivo no hubiese temido afectar su imagen decretando racionamiento apenas las condiciones lo exigieran. Argumentamos que la variabilidad hidrológica a la que está sujeta Chile central hace inevitable las reducciones de consumo en años muy secos. Las crisis ocurren porque el sistema de precios es inflexible e inadecuado para acomodarlas sin cortes de energía; ante una escasez tanto usuarios como empresas enfrentan precios muy por debajo del costo de oportunidad de la energía. Esto, además, introduce un problema de moral hazard que incentiva el uso ineficiente del agua embalsada y hace más probable que ocurra una escasez. Es equivocado pensar que las crisis se evitarían dándole más atribuciones discrecionales al regulador. Varios episodios muestran que no usó las atribuciones que tenía. Al ejecutivo le incomoda zanjar conflictos entre privados porque sus intervenciones tienen consecuencias patrimoniales que lo dejan vulnerable a las críticas de quienes se sienten perjudicados. Por ello se debe liberar al regulador de la obligación de zanjar conflictos entre privados. Esto requiere liberalizar la regulación.

Suggested Citation

  • Carlos Diaz & Raimundo Soto, "undated". "Open-Access Issues in the Chilean Telecommunications and Electricity Sectors," ILADES-UAH Working Papers inv124, Universidad Alberto Hurtado/School of Economics and Business.
    • Handle: RePEc:ila:ilades:inv124
    as

    Download full text from publisher

    File URL: http://fen.uahurtado.cl/wp-content/uploads/2010/07/inv124.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hart, Oliver D & Moore, John, 1988. "Incomplete Contracts and Renegotiation," Econometrica, Econometric Society, vol. 56(4), pages 755-785, July.
    2. Schwartz, Marius, 1986. "The Nature and Scope of Contestability Theory," Oxford Economic Papers, Oxford University Press, vol. 38(0), pages 37-57, Suppl. No.
    3. Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: I. Overview and Nondiscriminatory Pricing," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 1-37, Spring.
    4. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    5. Luis Oscar Herrera & Fernando Coloma, 1990. "Análisis Institucional y Económico del Sector de Telecomunicaciones en Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 27(82), pages 429-472.
    6. Nicholas Economides, 1997. "The Economics of Networks," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
    7. Nicholas Economides & Lawrence J. White, 1995. "Access and Interconnection Pricing: How Efficient is the Efficient Component Pricing Rule?," Working Papers 95-04, New York University, Leonard N. Stern School of Business, Department of Economics.
    8. Carlos Díaz & Alexander Galetovic & Raimundo Soto, "undated". "Anatomía de una Crísis Eléctrica," ILADES-UAH Working Papers inv122, Universidad Alberto Hurtado/School of Economics and Business.
    9. Ingo Vogelsang, 1997. "Telecommunications Competition: The Last Ten Miles," Books, American Enterprise Institute, number 917773, September.
    10. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, December.
    11. Zupan, Mark A, 1989. "The Efficacy of Franchise Bidding Schemes in the Case of Cable Television: Some Systematic Evidence," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 401-456, October.
    12. J. Gregory Sidak & William Baumol, 1994. "Toward Competition in Local Telephony," Books, American Enterprise Institute, number 52984, September.
    13. Bitran, E. & Serra, Pablo, 1994. "Regulatory issues in the privatization of public utilities: The chilean experience," The Quarterly Review of Economics and Finance, Elsevier, vol. 34(Supplemen), pages 179-197.
    14. Eric Maskin & Jean Tirole, 1997. "Unforseen Contingencies, Property Rights, and Incomplete Contracts," Harvard Institute of Economic Research Working Papers 1796, Harvard - Institute of Economic Research.
    15. Pablo T. Spiller & Carlo G. Cardilli, 1997. "The Frontier of Telecommunications Deregulation: Small Countries Leading the Pack," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 127-138, Fall.
    16. Shapiro, C. & Willing, D.R., 1990. "Economic Rationales For The Scope Of Privatization," Papers 41, Princeton, Woodrow Wilson School - Discussion Paper.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Engel, Eduardo & Fischer, Ronald & Galetovic, Alexander, 2005. "Highway franchising and real estate values," Journal of Urban Economics, Elsevier, vol. 57(3), pages 432-448, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carlo Cambini & Piercarlo Ravazzi & Tommaso Valletti, 2000. "La tariffazione dell'accesso nelle telecomunicazioni: principi economici e interventi regolatori in alcuni paesi industrializzati," ICER Working Papers 10-2000, ICER - International Centre for Economic Research.
    2. Kotakorpi, Kaisa, 2002. "Access Pricing and Competition in Telecommunications," Discussion Papers 283, VATT Institute for Economic Research.
    3. Mark Armstrong & David E.M. Sappington, 2006. "Regulation, Competition and Liberalization," Journal of Economic Literature, American Economic Association, vol. 44(2), pages 325-366, June.
    4. Armstrong, Mark & Sappington, David E.M., 2007. "Recent Developments in the Theory of Regulation," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 27, pages 1557-1700, Elsevier.
    5. Eduardo Saavedra, "undated". "Opportunistic Behavior and Legal Disputes in the Chilean Electricity Sector," ILADES-UAH Working Papers inv130, Universidad Alberto Hurtado/School of Economics and Business.
    6. Nicholas Economides, 1997. "The Economics of Networks," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
    7. Joan Calzada & Francesc Trillas, 2005. "The interconnection prices in telecomunications: from theory to practice," Hacienda Pública Española / Review of Public Economics, IEF, vol. 173(2), pages 85-125, June.
    8. Raimundo Soto, "undated". "Institutional Reforms in the Electricity Sector," ILADES-UAH Working Papers inv120, Universidad Alberto Hurtado/School of Economics and Business.
    9. Eduardo Saavedra & Xavier Mancero, "undated". "Entry, Cream Skimming, and Competition: Theory and Simulation for Chile's Local Telephony Market," ILADES-UAH Working Papers inv132, Universidad Alberto Hurtado/School of Economics and Business.
    10. Lewis, Tracy R. & Sappington, David E. M., 1999. "Access pricing with unregulated downstream competition," Information Economics and Policy, Elsevier, vol. 11(1), pages 73-100, March.
    11. Parker, David, 2001. "Economic Regulation: A Preliminary Literature Review and Summary of Research Questions Arising," Centre on Regulation and Competition (CRC) Working papers 30616, University of Manchester, Institute for Development Policy and Management (IDPM).
    12. Herguera-García, Iñigo & Aguilar-Barceló, José G., 2004. "El papel de las tarifas de interconexión en las industrias en red [The role of interconnection charges in network industries]," MPRA Paper 4733, University Library of Munich, Germany, revised Jan 2004.
    13. Massey, Patrick, 2004. "Is Irish Utility Regulation Failing Consumers?," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2004(4-Winter), pages 1-18.
    14. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2003. "An assessment of telecommunications reform in developing countries," Information Economics and Policy, Elsevier, vol. 15(4), pages 443-466, December.
    15. Stephen P. King, 1997. "National Competition Policy," The Economic Record, The Economic Society of Australia, vol. 73(222), pages 270-284, September.
    16. Tooraj Jamasb and Manuel Llorca, 2019. "Energy Systems Integration: Economics of a New Paradigm," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    17. Vogelsang, Ingo, 2000. "Regulation of Access to the Telecommunications Network of New Zealand: A Review of the Literature," Working Paper Series 19030, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    18. Eduardo Saavedra, "undated". "Renegotiating Incomplete Contracts: Over and Under Investment of Concessioned Public Infrastructure," ILADES-UAH Working Papers inv106, Universidad Alberto Hurtado/School of Economics and Business.
    19. Edmond Baranes, 1998. "Réglementation et ouverture à la concurrence des activités en réseaux : le cas des télécommunications," Revue Française d'Économie, Programme National Persée, vol. 13(4), pages 161-186.
    20. Heli Koski & Tobias Kretschmer, 2004. "Survey on Competing in Network Industries: Firm Strategies, Market Outcomes, and Policy Implications," Journal of Industry, Competition and Trade, Springer, vol. 4(1), pages 5-31, March.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ila:ilades:inv124. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mauricio Tejada (email available below). General contact details of provider: https://edirc.repec.org/data/deilacl.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.