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Rethinking Electricity Sector Reform in Developing Asia: Balancing Economic and Environmental Objectives

Author

Listed:
  • Anupama Sen

    (Oxford Institute for Energy Studies)

  • Rabindra Nepal

    (OCDU Business School, Charles Darwin University)

  • Tooraj Jamasb

    (Durham Business School)

Abstract

The OECD or ‘standard’ model of electricity sector reforms has been widely adopted in non-OECD Asian countries since the 1990s. However, despite two decades of attempts at reforms, no notable progress has been made towards the original objectives of reform. Whilst in OECD countries, reforms were implemented against excess capacity and stable institutions, in developing non-OECD Asian countries they were implemented against chronic electricity shortages, fiscal constraints, weak institutions, and complex political factors. In recent years the debate also focuses on the suitability of electricity market reforms originally designed around fossil fuels in delivering low carbon electricity systems. With electricity demand set to double over the next two decades, reforms in non-OECD Asian countries have important economic as well as environmental implications in terms of global energy use and emissions. This chapter assesses the application of the OECD model of electricity reform in Asia. We analyse the experience of three South Asian countries – India, Nepal and Bhutan, to illustrate the economic and environmental conflicts in electricity market reform against the context of cross-border regional electricity trade.

Suggested Citation

  • Anupama Sen & Rabindra Nepal & Tooraj Jamasb, 2016. "Rethinking Electricity Sector Reform in Developing Asia: Balancing Economic and Environmental Objectives," Discussion Papers Series 572, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uq2004:572
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    References listed on IDEAS

    as
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    Cited by:

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    2. Gunther Bensch, 2019. "The effects of market-based reforms on access to electricity in developing countries: a systematic review," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 11(2), pages 165-188, April.
    3. Lisa Bagnoli & Salvador Bertomeu & Antonio Estache & Maria Vagliasindi, 2020. "Are the Poor Better Off with Public or Private Utilities ?A Survey of the Academic Evidence on Developing Economies," Working Papers ECARES 2020-24, ULB -- Universite Libre de Bruxelles.

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    More about this item

    Keywords

    market liberalisation; electricity restructuring; environment;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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