The Impact of Regulatory Governance and Privatization on Electricity Industry Generation Capacity in Developing Economies

Cubbin, John; Stern, Jon

doi:10.1093/wber/lhj004

Cited by 110 publications

(111 citation statements)

References 19 publications

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“…An alternative is thus needed. Generation capacity is often used as a proxy for access (Cubbin and Stern 2006;others 2002 and. We prefer to use levels of energy use per capita (expressed in kg of oil equivalent), defined by the IEA as "apparent consumption, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport."…”

Section: Selection Of Access Indicatorsmentioning

confidence: 99%

Utilities Reforms And Corruption In Developing Countries

Estache¹,

Goicoechea²,

Trujillo³

2006

Policy Research Working Papers

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This paper shows empirically that "privatization" in the energy, telecommunications, and water sectors, and the introduction of independent regulators in those sectors, have not always had the expected effects on access, affordability, or quality of services. It also shows that corruption leads to adjustments in the quantity, quality, and price of services consistent with the profit-maximizing behavior that one would expect from monopolies in the sector. Finally, our results suggest that privatization and the introduction of independent regulators have, at best, only partial effects on the consequences of corruption for access, affordability, and quality of utilities services.

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Section: Selection Of Access Indicatorsmentioning

confidence: 99%

Utilities Reforms And Corruption In Developing Countries

Estache¹,

Goicoechea²,

Trujillo³

2006

Policy Research Working Papers

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“…For instance, Cubbin and Stern (2006) studied the impact of regulatory law and better regulatory governance on the performance of the electricity industry by using panel data from 28…”

Section: Affordable Electricity Access For the Poormentioning

confidence: 99%

Reforming the power : an institutional analysis of power sector reforms in Pakistan

Ullah¹

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“…The first group of studies (those focusing on the political economy of electricity market reforms) include only two papers by Chang & Berdiev (2011) and Cubbin & Stern (2006). Chang & Berdiev (2011) examine the effect of government ideology, political factors and globalization on energy regulation in electricity and gas industries using the bias-corrected least square dummy variable model in a panel of 23 OECD countries over the period of .…”

Section: Literature Reviewmentioning

confidence: 99%

“…Further, they conclude that higher political constraints and more globalized countries lead to deregulation in electricity and gas sectors; and economic and social integration are the forces that promote deregulation in the gas industry, whereas political integration advances deregulation in the electricity industry. Cubbin & Stern (2006) assess whether a regulatory law and higher quality regulatory governance are associated with superior outcomes in the electricity industry. Their analysis, for 28 developing economies over 1980-2001, draws on theoretical and empirical work on the impact of telecommunications regulators in developing economies.…”

Section: Literature Reviewmentioning

confidence: 99%

The Political Economy of Electricity Market Liberalization: A Cross-country Approach

Erdoğdu¹

2014

The Energy Journal

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More than half of the countries in the world have introduced a reform process in their power sectors and billions of dollars have been spent on liberalizing electricity markets around the world. Ideological considerations, political composition of governments and educational/professional background of leaders have played and will play a crucial role throughout the reform process. Adapting a political economy perspective, this paper attempts to discover the impact of political economy variables on the liberalization process in electricity markets. Empirical models are developed and analyzed using panel data from 55 developed and developing countries covering the period 1975-2010. The research findings suggest that there is a significant negative relationship between electricity market liberalization and the size of industry sector, meaning that countries with larger industry sectors tend to liberalize less. Also, we detect a negative correlation between polity score and power sector liberalization, that is; it cannot be argued that liberalization policies are stronger in more democratic countries. On the other hand, our results imply that countries that receive foreign financial aid or assistance are more likely to liberalize their electricity markets. In OECD countries, single-party governments accelerate the reform process by reducing public ownership and vertical integration. Moreover, we detect a negative relationship between the years the chief executive has been in office and the reform progress in OECD countries. Furthermore, we identify a decrease in vertical integration in electricity industry during the terms of parties with "right" or "left" ideologies in OECD countries. Additionally, professional and educational background of head of executive branch (prime minister, president and so on) seem to have very significant impact on reform process in OECD countries, but this is not the case in non-OECD countries. Leaders with a professional background as entrepreneurs speed up electricity market liberalization process in OECD countries while those with a background as economists slow it down. As for educational background, the reforms seem to progress slower in OECD countries if the head of executive has an educational background in economics or natural science. As a final point, the study suggests that EU or OECD membership, the existence of electricity market reform idea, population density, electricity consumption, income level, educational level, imports of goods and services (as % of GDP) and country specific features have a strong correlation with liberalization process in electricity markets.

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The Impact of Regulatory Governance and Privatization on Electricity Industry Generation Capacity in Developing Economies

Cited by 110 publications

References 19 publications

Utilities Reforms And Corruption In Developing Countries

Utilities Reforms And Corruption In Developing Countries

Reforming the power : an institutional analysis of power sector reforms in Pakistan

The Political Economy of Electricity Market Liberalization: A Cross-country Approach

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