IDEAS home Printed from https://ideas.repec.org/p/uea/ueaccp/2008_05.html
   My bibliography  Save this paper

Evaluating the Evidence on Electricity Reform: Lessons for the South East Europe (SEE) market

Author

Listed:
  • Michael Pollitt

    (ESRC Electricity Policy Research Group and Judge Business School, University of Cambridge)

Abstract

This paper discusses the evidence on electricity reform and relates it to the current situation of the South East Europe (SEE) electricity market. We begin by discussing the main elements of the European Union (EU) electricity reform model. Then we go on to discuss emerging good practice in the regulation of national electricity markets in the EU. This is important because it reflects the key role placed on independent regulation of the electricity sector in the EU reform model. Next, we evaluate the empirical evidence on the success of the EU reform model in particular before discussing the success of electricity reforms more generally. This leads on to a discussion of the particular context of SEE electricity reform and what specific issues this raises. We conclude with a discussion of the importance of more general institutional context of SEE electricity reform. The paper suggests that it will be a substantial, but worthwhile, challenge to create a workable supra-national electricity market in the region.

Suggested Citation

  • Michael Pollitt, 2008. "Evaluating the Evidence on Electricity Reform: Lessons for the South East Europe (SEE) market," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2008-05, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:ueaccp:2008_05
    as

    Download full text from publisher

    File URL: https://ueaeco.github.io/working-papers/papers/ccp/CCP-08-05.pdf
    File Function: main text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    2. Guasch, J. Luis & Laffont, Jean-Jacques & Straub, Stephane, 2003. "Renegotiation of concession contracts in Latin America," Policy Research Working Paper Series 3011, The World Bank.
    3. Hattori, Toru & Tsutsui, Miki, 2004. "Economic impact of regulatory reforms in the electricity supply industry: a panel data analysis for OECD countries," Energy Policy, Elsevier, vol. 32(6), pages 823-832, April.
    4. Pollitt, Michael, 2008. "The arguments for and against ownership unbundling of energy transmission networks," Energy Policy, Elsevier, vol. 36(2), pages 704-713, February.
    5. Nils-Henrik M. von der Fehr, Eirik S. Amundsen and Lars Bergman, 2005. "The Nordic Market: Signs of Stress?," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 71-98.
    6. Blackman, Allen & Wu, Xun, 1999. "Foreign direct investment in china's power sector: trends, benefits and barriers," Energy Policy, Elsevier, vol. 27(12), pages 695-711, November.
    7. Evens Salies and Catherine Waddams Price, 2004. "Charges, Costs and Market Power: the Deregulated UK Electricity Retail Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 19-36.
    8. Pollitt, Michael, 2008. "Electricity reform in Argentina: Lessons for developing countries," Energy Economics, Elsevier, vol. 30(4), pages 1536-1567, July.
    9. David M. Newbery, 2005. "Electricity liberalization in Britain: The quest for a satisfactory wholesale market design," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 43-70.
    10. Jamasb, T. & Mota, R. & Newbery, D. & Pollitt, M., 2004. "‘Electricity Sector Reform in Developing Countries: A Survey of Empirical Evidence on Determinants and Performance’," Cambridge Working Papers in Economics 0439, Faculty of Economics, University of Cambridge.
    11. Paul L. Joskow, 1998. "Electricity Sectors in Transition," The Energy Journal, , vol. 19(2), pages 25-52, April.
    12. Yin-Fang Zhang & David Parker & Colin Kirkpatrick, 2008. "Electricity sector reform in developing countries: an econometric assessment of the effects of privatization, competition and regulation," Journal of Regulatory Economics, Springer, vol. 33(2), pages 159-178, April.
    13. M. Pollitt, 2004. "Electricity reform in Chile. Lessons for developing countries," Competition and Regulation in Network Industries, Intersentia, vol. 5(3), pages 221-263, September.
    14. Witold Jerzy Henisz, 2004. "Political Institutions and Policy Volatility," Economics and Politics, Wiley Blackwell, vol. 16(1), pages 1-27, March.
    15. Helm, Dieter, 2004. "Energy, the State, and the Market: British Energy Policy since 1979," OUP Catalogue, Oxford University Press, number 9780199270743.
    16. Natsuko Toba, 2003. "Welfare impacts of electricity generation sector reform in the Philippines," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 9(2), pages 170-170, May.
    17. Raffaella Lisbôa Mota, 2003. "The Restructuring and Privatisation of Electricity Distribution and Supply Business in Brazil: A Social Cost-Benefit Analysis," Working Papers EP16, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    18. Richard Green & Tanga McDaniel, 1998. "Competition in electricity supply: will ‘1998’ Be worth it?," Fiscal Studies, Institute for Fiscal Studies, vol. 19(3), pages 273-293, August.
    19. Pollitt, M. G., 1997. "The Restructuring and Privatisation of the Electricity Supply Industry in Northern Ireland: Will it be Worth it?," Cambridge Working Papers in Economics 9701, Faculty of Economics, University of Cambridge.
    20. Mota, R.L., 2003. "The Restructuring and Privatisation of Electricity Distribution and Supply Business in Brazil: A Social Cost-Benefit Analysis," Cambridge Working Papers in Economics 0309, Faculty of Economics, University of Cambridge.
    21. Toba, N., 2003. "Welfare Impacts of Electricity Generation Sector Reform in the Philippines," Cambridge Working Papers in Economics 0316, Faculty of Economics, University of Cambridge.
    22. Tooraj Jamasb & Michael Pollitt, 2005. "Electricity Market Reform in the European Union: Review of Progress toward Liberalization &Integration," The Energy Journal, , vol. 26(1_suppl), pages 11-41, June.
    23. Jamasb, Tooraj & Pollitt, Michael, 2007. "Incentive regulation of electricity distribution networks: Lessons of experience from Britain," Energy Policy, Elsevier, vol. 35(12), pages 6163-6187, December.
    24. Natsuko Toba, 2003. "Welfare Impacts of Electricity Generation Sector Reform in the Philippines," Working Papers EP23, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    25. repec:hal:spmain:info:hdl:2441/7189 is not listed on IDEAS
    26. Domah, P. & Pollitt, M.G., 2000. "The Restructuring and Privatisation of Electricity Distribution and Supply Businesses in England and Wales: A Social Cost Benefit Analysis," Cambridge Working Papers in Economics 0007, Faculty of Economics, University of Cambridge.
    27. Mathias M Siems, 2006. "Legal origins: reconciling law and finance and comparative law," Working Papers wp321, Centre for Business Research, University of Cambridge.
    28. Green, R. & Lorenzoni, A. & Perez, Y. & Pollitt, M., 2006. "Benchmarking Electricity Liberalisation in Europe’Benchmarking Electricity Liberalisation in Europe," Cambridge Working Papers in Economics 0629, Faculty of Economics, University of Cambridge.
    29. Preetum Domah & Michael Pollitt & Jon Stern, 2002. "Modelling the Costs of Electricity Regulation: Evidence of Human Resource Constraints in Developing Countries," Working Papers EP11, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    30. Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 3-39, January.
    31. John Cubbin & Jon Stern, 2006. "The Impact of Regulatory Governance and Privatization on Electricity Industry Generation Capacity in Developing Economies," The World Bank Economic Review, World Bank, vol. 20(1), pages 115-141.
    32. repec:hal:wpspec:info:hdl:2441/7189 is not listed on IDEAS
    33. Ades, Alberto & Di Tella, Rafael, 1997. "National Champions and Corruption: Some Unpleasant Interventionist Arithmetic," Economic Journal, Royal Economic Society, vol. 107(443), pages 1023-1042, July.
    34. Littlechild, S. C., 1992. "Competition and regulation in the British electricity industry," Utilities Policy, Elsevier, vol. 2(4), pages 270-275, October.
    35. Newbery, D., 2006. "Market design," Cambridge Working Papers in Economics 0615, Faculty of Economics, University of Cambridge.
      • David Newbery, 2006. "Market Design," Working Papers EPRG 0515, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    36. Richard Green & Arturo Lorenzoni & Yannick Perez & Michael Pollitt, 2006. "Benchmarking Electricity Liberalisation in Europe," Working Papers EPRG 0609, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    37. Faye Steiner, 2003. "Regulation, industry structure and performance in the electricity supply industry," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 143-182.
    38. Venkataraman Krishnaswamy & Gary Stuggins, 2003. "Private Sector Participation in the Power Sector in Europe and Central Asia : Lessons from the Last Decade," World Bank Publications - Books, The World Bank Group, number 15123.
    39. Carlo Fiorio & Massimo Florio & Raffaele Doronzo, 2007. "The Electricity Industry Reform Paradigm in the European Union: Testing the Impact on Consumers," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1066, Universitá degli Studi di Milano.
    40. Marco Neuhaus, 2006. "The Impact of FDI on Economic Growth," Contributions to Economics, Springer, number 978-3-7908-1735-5, December.
    41. Michael D. Bordo, 2006. "Sudden Stops, Financial Crises, and Original Sin in Emerging Countries: Déjà vu?," NBER Working Papers 12393, National Bureau of Economic Research, Inc.
    42. Jamasb, T. & Pollitt, M., 2004. "Electricity Market Reform in the European Union: Review of progress towards liberalisation and integration," Cambridge Working Papers in Economics 0471, Faculty of Economics, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

    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. Tooraj Jamasb & Rabindra Nepal & Govinda R. Timilsina, 2017. "A Quarter Century Effort Yet to Come of Age: A Survey of Electricity Sector Reform in Developing Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    2. Erdogdu, Erkan, 2013. "Essays on Electricity Market Reforms: A Cross-Country Applied Approach," MPRA Paper 47139, University Library of Munich, Germany.
    3. Erdogdu, Erkan, 2011. "The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: A cross country panel data analysis," Energy Policy, Elsevier, vol. 39(3), pages 1080-1092, March.
    4. Jamasb,Tooraj & Nepal,Rabindra & Timilsina,Govinda R., 2015. "A quarter century effort yet to come of age : a survey of power sector reforms in developing countries," Policy Research Working Paper Series 7330, The World Bank.
    5. Jamasb, T. & Mota, R. & Newbery, D. & Pollitt, M., 2004. "‘Electricity Sector Reform in Developing Countries: A Survey of Empirical Evidence on Determinants and Performance’," Cambridge Working Papers in Economics 0439, Faculty of Economics, University of Cambridge.
    6. Pollitt, Michael G., 2012. "The role of policy in energy transitions: Lessons from the energy liberalisation era," Energy Policy, Elsevier, vol. 50(C), pages 128-137.
    7. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    8. Anupama Sen and Tooraj Jamasb, 2012. "Diversity in Unity: An Empirical Analysis of Electricity Deregulation in Indian States," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    9. Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming small electricity systems under political instability: The case of Nepal," Energy Policy, Elsevier, vol. 40(C), pages 242-251.
    10. Pollitt, Michael, 2008. "The arguments for and against ownership unbundling of energy transmission networks," Energy Policy, Elsevier, vol. 36(2), pages 704-713, February.
    11. Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming the power sector in transition: Do institutions matter?," Energy Economics, Elsevier, vol. 34(5), pages 1675-1682.
    12. Jamasb, T. & Newbery, D. & Pollitt, M., 2004. "'Core Indicators for Determinants and Performance of Electricity Sector in Developing Countries’," Cambridge Working Papers in Economics 0438, Faculty of Economics, University of Cambridge.
    13. Michael Pollitt, 2021. "Measuring the Impact of Electricity Market Reform in a Chinese Context," Working Papers EPRG2111, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    14. William Yu & Michael G. Pollitt, 2009. "Does Liberalisation cause more electricity blackouts? Evidence from a global study of newspaper reports," Working Papers EPRG 0902, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    15. Bacchiocchi, Emanuele & Florio, Massimo & Taveggia, Giulia, 2015. "Asymmetric effects of electricity regulatory reforms in the EU15 and in the New Member States: Empirical evidence from residential prices 1990–2011," Utilities Policy, Elsevier, vol. 35(C), pages 72-90.
    16. Schober, Dominik, 2013. "Static vs. dynamic impacts of unbundling: Electricity markets in South America," ZEW Discussion Papers 13-033, ZEW - Leibniz Centre for European Economic Research.
    17. Polemis, Michael L., 2016. "New evidence on the impact of structural reforms on electricity sector performance," Energy Policy, Elsevier, vol. 92(C), pages 420-431.
    18. Stern, Jon & Cubbin, John, 2005. "Regulatory effectiveness : the impact of regulation and regulatory governance arrangements on electricity industry outcomes," Policy Research Working Paper Series 3536, The World Bank.
    19. Jamasb, Tooraj & Pollitt, Michael, 2007. "Incentive regulation of electricity distribution networks: Lessons of experience from Britain," Energy Policy, Elsevier, vol. 35(12), pages 6163-6187, December.
    20. Nagayama, Hiroaki, 2009. "Electric power sector reform liberalization models and electric power prices in developing countries: An empirical analysis using international panel data," Energy Economics, Elsevier, vol. 31(3), pages 463-472, May.

    More about this item

    Keywords

    electricity reform; South East Europe; European single electricity market;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

    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:uea:ueaccp:2008_05. 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: Juliette Hardmad (email available below). General contact details of provider: https://edirc.repec.org/data/esueauk.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.