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Electricity sector reform in developing countries : a survey of empirical evidence on determinants and performance (English)

Driven by ideology, economic reasoning, and early success stories, vast amounts of financial resources and effort have been spent on reforming infrastructure industries in developing countries. It is therefore important to examine whether evidence supports the logic of reforms. The authors review the empirical evidence on electricity reform in developing countries. They find that country institutions and sector governance play an important role in the success and failure of reform. And reforms also appear to have increased operating efficiency and expanded access to urban customers. However, the reforms have to a lesser degree passed on efficiency gains to customers, tackled distributional effects, and improved rural access. Moreover, some of the literature is not methodologically robust and on par with general development economics literature. Further, findings on some issues are limited and inconclusive, while other important areas are yet to be addressed. Until we know more, implementation of reforms will be more based on ideology and economic theory rather than solid economic evidence.


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    Jamasb,Tooraj, Lisboa Mota,Raffaella Maria, Newbery,David M., Pollitt,Michael Gerald

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    Policy Research Working Paper

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    The World Region,

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    Electricity sector reform in developing countries : a survey of empirical evidence on determinants and performance

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    social cost-benefit analysis;Country Policy and Institutional Assessment;energy use per capita;exercise of market power;competition in network industries;public enterprise performance evaluation;legal and regulatory framework;quality of public service;Electricity Sector Reform;third party access;hard budget constraint;demand for electricity;implementation of reform;effect of regulation;electricity supply industry;security and reliability;enactment of legislation;quality of data;state owned enterprise;Electricity Sector Restructuring;degree of monopoly;financial and operating;risk of expropriation;effects of privatisation;random effects model;impact of reforms;nature of regulation;degrees of freedom;per capita term;state of knowledge;choice of fuel;independent regulatory agency;independent regulatory authority;models of competition;second world war;regulation of monopoly;allocation of energy;economies of scale;wholesale generation market;natural monopoly activity;social and environmental;Access to Electricity;horizontal market power;success and failure;impact on performance;rate of investment;public sector liability;competitive market structure;high voltage transmission;electricity generation market;expansion of capacity;independent power producer;power purchase agreement;per capita income;industrial electricity price;impact on price;relative price change;absence of consideration;private ownership;empirical study;empirical literature;institutional factor;infrastructure industry;natural monopolies;driving force;Macroeconomic Policy;independent variable;market rule;model specification;labour productivity;econometric analysis;environmental commitment;conceptual model;industrial price;empirical analysis;reform measure;judicial independence;capacity utilisation;reserve margin;Transition economies;effective regulatory;causal effect;individual study;property right;institutional determinants;econometric study;econometric technique;political risk;residential price;electricity industry;regulatory effectiveness;independent regulation;vertical integration;transition countries;integrated system;Electricity Market;paradigm shift;incentive regulation;productive efficiency;reform process;empirical evidence;simultaneous equation;generation technology;large population;price setting;allocative efficiency;regression analysis;historical development;transition economy;regulation variable;transition country;functional form;market-oriented reforms;predictive power;donor agencies;political issue;reform policy;empirical work;wholesale market;regulatory change;market concentration;market size;efficient price;performance variable;institutional condition;spot market;retail market;cross-section analysis;consumer protection;energy endowment;fuel import;institutional feature;government commitment;transmission system;technological evolution;maximum likelihood;cross-country data;price volatility;oil crisis;privatisation experience;political condition;demand growth;excessive use;private company;var model;price movement;power outage;capital flow;fixed effect;econometric theory;random-effects specification;test statistic;supply activity;ownership change;interventionist policy;macroeconomic effect;explanatory variable;push factor;information asymmetry;parliamentary control;take time;energy independence;electricity asset;functionalist theory;regulatory regime;domestic consumer;energy reform;dynamic theory;perverse incentives;spot price;economic efficiency;measure of reform;measure of use;conceptual framework;market economy;privatization proceeds;political costs;public ownership;public budget;public deficit;public commitment;fundamental problem;regulatory institution;electricity crisis;electricity act;price regulation;early success;state ownership;service coverage;horizontal separation;economics literature;macroeconomic condition;general development;financial resource;efficiency gain;vested interests;increased competition;regulatory environment;generation capacity



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Jamasb,Tooraj Lisboa Mota,Raffaella Maria Newbery,David M. Pollitt,Michael Gerald

Electricity sector reform in developing countries : a survey of empirical evidence on determinants and performance (English). Policy, Research working paper ; no. WPS 3549 Washington, D.C. : World Bank Group.