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Do Regulation and Ownership Drive the Efficiency of Electricity Distribution? Evidence from Latin America

  • Antonio Estache
  • Martin Rossi

We analyze the impact of alternative regulatory regimes on the labor productivity of electricity distribution firms in Latin America. We find that (i) incentive-based regimes lead to higher labor productivity than rate-of-return regulation, and (ii) privatized firms operating under rate of return have, at most, similar labor productivity as public firms. © 2004 Published by Elsevier B.V.

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Paper provided by ULB -- Universite Libre de Bruxelles in its series ULB Institutional Repository with number 2013/43972.

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Date of creation: 2004
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Publication status: Published in: Economics letters (2004) v.86 n° 2,p.253-257
Handle: RePEc:ulb:ulbeco:2013/43972
Note: SCOPUS: ar.j
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  1. Kumbhakar, Subal C. & Hjalmarsson, Lennart, 1998. "Relative performance of public and private ownership under yardstick competition: electricity retail distribution," European Economic Review, Elsevier, vol. 42(1), pages 97-122, January.
  2. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, June.
  3. 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, June.
  4. Vogelsang, Ingo, 2002. "Incentive Regulation and Competition in Public Utility Markets: A 20-Year Perspective," Journal of Regulatory Economics, Springer, vol. 22(1), pages 5-27, July.
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