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The Political-Economy Implications of the Transition from State-Owned to Mixed-Owned Enterprises: Evidence from the European Gas Sector

Author

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  • Roberto CARDINALE

Abstract

This paper analyses how the transition from State-Owned Enterprises (SOEs) to Mixed- Owned Enterprises (MOEs) in the European gas sector affected the European states’ ability to pursue public policy objectives. More specifically, the analysis focuses on the extent to which public and private interests can be reconciled within MOEs’ strategy. The paper suggests that the rise of profitability as the central objective for MOEs has prevented states from pursuing some, though not all, of the policy objectives that they could pursue before the transition. For example, states can no more pursue large-scale plans of economic and technological development through MOEs, or ensure consumers’ price affordability irrespective of market fluctuations. However, states may still be able to positively contribute to energy security thanks to the major shares held in MOEs, for instance by vetoing divestment from import infrastructure. The analysis suggests the need for states to devise alternative ways to pursue their objectives in the framework of national and European energy policy.

Suggested Citation

  • Roberto CARDINALE, 2017. "The Political-Economy Implications of the Transition from State-Owned to Mixed-Owned Enterprises: Evidence from the European Gas Sector," Departmental Working Papers 2017-10, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2017-10
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    References listed on IDEAS

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    Cited by:

    1. Cardinale, Roberto, 2019. "Theory and practice of State intervention: Italy, South Korea and stages of economic development," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 206-216.
    2. Roberto Cardinale, 2022. "State-Owned Enterprises’ Reforms and their Implications for the Resilience and Vulnerability of the Chinese Economy: Evidence from the Banking, Energy and Telecom Sectors," Networks and Spatial Economics, Springer, vol. 22(3), pages 489-514, September.
    3. Roberto Cardinale, 2023. "Liberalization and the volatility of gas prices: Exploring their relation in times of abundance and scarcity," Competition and Regulation in Network Industries, , vol. 24(2-3), pages 72-96, June.
    4. Cardinale, Roberto, 2019. "The profitability of transnational energy infrastructure: A comparative analysis of the Greenstream and Galsi gas pipelines," Energy Policy, Elsevier, vol. 131(C), pages 347-357.
    5. Cardinale, Roberto & Belotti, Emanuele, 2022. "The rise of the shareholding state in Italy: A policy-oriented strategist or simply a shareholder? Evidence from the energy and banking sectors’ privatizations," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 52-60.

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    More about this item

    Keywords

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    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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