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Regulatory Policies and Reforms in the Power and Downstream Oil Industries

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  • Aldaba, Rafaelita M.

Abstract

This paper looks at the regulatory reforms in the electricity and downstream oil industries, two important inputs to the production process that were heavily regulated by the government. While electricity has strong externalities as well as economies of scale and scope, the oil industry does not exhibit natural monopoly characteristics nor does it display economic features that would warrant government regulation. The paper also analyzes the economic theories underlying these reforms: why is regulation necessary, what are the different forms of regulation, and how can these policy reforms bring about competition? It also identifies the emerging issues and problems associated with the regulatory reforms. Given our little experience in the effective use of public regulation in a market-driven setting, research is needed to provide a deeper understanding of these issues within the context of our economic, institutional, and political structure. This is necessary in order to come up with possible approaches to overcome our weaknesses and shore up weak administrative and enforcement capacities.

Suggested Citation

  • Aldaba, Rafaelita M., 2006. "Regulatory Policies and Reforms in the Power and Downstream Oil Industries," Philippine Journal of Development PJD 2004 Vol. XXXI No. 1-, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:pjdevt:pjd_2004_vol__xxxi_no__1-c
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    File URL: https://www.pids.gov.ph/publication/philippine-journal-of-development/regulatory-policies-and-reforms-in-the-power-and-downstream-oil-industries
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    References listed on IDEAS

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    1. Estache, Antonio & Valletti, Tommaso, 1999. "The Theory of Access Pricing: an Overview for Infrastructure Regulators," CEPR Discussion Papers 2133, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Fabella, Raul V., 2002. "The Regulatory Environment of the Energy Industry in the Philippines," Centre on Regulation and Competition (CRC) Working papers 30677, University of Manchester, Institute for Development Policy and Management (IDPM).
    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 201904, University of Hawaii at Manoa, Department of Economics.
    3. 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.
    4. 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.
    5. Aldaba, Rafaelita M., 2005. "The Impact of Market Reforms on Competition, Structure and Performance of the Philippine Economy," Discussion Papers DP 2005-24, Philippine Institute for Development Studies.

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