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Regulatory effectiveness and the empirical impact of variations in regulatory governance - electricity industry capacity and efficiency in developing countries

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  • Cubbin, John
  • Stern, John

Abstract

The authors assess for 28 developing countries over the period 1980-2001 whether the existence of a regulatory law and higher quality regulatory governance are significantly associated with superior electricity outcomes. Their analysis draws on theoretical and empirical work on the impact of independent central banks and of developing country telecommunications regulators. The authors'empirical analysis concludes that a regulatory law and higher quality governance are positively and significantly associated with higher per capita generation capacity levels. In addition, this positive impact continues to increase for at least three years and probably for over 10 years as experience develops and regulatory reputation grows. The results are robust to alternative dynamic specifications and show no sign of any significant endogeneity

Suggested Citation

  • Cubbin, John & Stern, John, 2005. "Regulatory effectiveness and the empirical impact of variations in regulatory governance - electricity industry capacity and efficiency in developing countries," Policy Research Working Paper Series 3535, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3535
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    References listed on IDEAS

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    12. Cubbin, J. & Stern, J., 2004. "Regulatory effectiveness: the impact of good regulatory governance on electricity industry capacity and efficiency in developing countries," Working Papers 04/04, Department of Economics, City University London.
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    Cited by:

    1. Bernardo Bortolotti & Carlo Cambini & Laura Rondi, 2011. "Regulatory Independence, Ownership and Firm Value: The Role of Political Institutions," RSCAS Working Papers 2011/43, European University Institute.
    2. Carlo Cambini & Laura Rondi, 2011. "Independence, Investment and Political Interference: Evidence from the European Union," RSCAS Working Papers 2011/42, European University Institute.
    3. Recuero Virto, Laura & Gasmi, Farid & Belaid, Rabah, 2009. "Qualité institutionnelle et performance économique : cas des télécommunications dans les pays en voie de développement
      [Institutional quality and economic performance through telecommunications in
      ," MPRA Paper 12889, University Library of Munich, Germany.
    4. Recuero Virto, Laura & Gasmi, Farid & Noumba Um, Paul, 2010. "Does political accountability matter for infrastructure regulation? The case of telecommunications," MPRA Paper 28496, University Library of Munich, Germany, revised 2010.
    5. Farid Gasmi & Paul Noumba Um & Laura Recuero Virto, 2009. "Political Accountability and Regulatory Performance in Infrastructure Industries: An Empirical Analysis," World Bank Economic Review, World Bank Group, vol. 23(3), pages 509-531, October.

    More about this item

    Keywords

    Environmental Economics&Policies; Governance Indicators; ICT Policy and Strategies; Economic Theory&Research; Banks&Banking Reform;

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