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A quarter century effort yet to come of age : a survey of power sector reforms in developing countries (English)

It has been more than two decades since the widespread initiation of global power sector reforms and restructuring. However, empirical evidence on the intended microeconomic, macroeconomic, and quality-related impacts of reforms across developing countries is lacking. This paper comprehensively reviews the empirical and theoretical literature on the linkages between power sector reforms, economic and technical efficiency, and poverty reduction. The review finds that the extent of power sector reforms has varied across developing countries in terms of changes in market structures, the role of the state, and the regulation of the sector. Overall, the reforms have improved the efficiency and productivity in the sector among many reforming countries. However, the efficiency gains have not always reached the end consumers because of the inability of sector regulators and inadequate regulatory frameworks. Reforms alleviate poverty and promote the welfare of the poor only when the poor have access to electricity. From a policy-making perspective, this implies that the reforms need to be supplemented with additional measures for accelerating electrification to help the poor.


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    Jamasb,Tooraj, Nepal,Rabindra, Timilsina,Govinda R.

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    Policy Research Working Paper

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    The World Region,

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    A quarter century effort yet to come of age : a survey of power sector reforms in developing countries

  • Keywords

    access study;impact of energy sector;social cost-benefit analysis;Environment & Energy;competition in electricity generation;access to energy service;legal and regulatory framework;impact of energy reform;privatization of electricity distribution;Commonwealth of Independent States;transmission and distribution network;rate of return regulation;power sector reform;Electricity Sector Reform;electricity price;Energy Sector Reform;impact of reforms;electricity distribution company;wholesale electricity market;removal of subsidy;wholesale power market;implementation of reform;gross electricity generation;small energy systems;regulation by contract;Electricity Market Reform;privatization of state;electricity distribution sector;free market price;public sector finance;energy sector privatization;impact of liberalization;private sector involvement;power sector liberalisation;negative environmental impact;wholesale electricity price;political will;independent power producer;cost of electricity;private capital flow;thermal generation plants;final consumption good;electricity distribution market;energy supply quality;international donor agencies;enhancement of productivity;improvements in efficiency;wholesale price decrease;panel data econometrics;distribution of welfare;total factor productivity;costs of investment;energy price impacts;electric power industry;single buyer model;security of supply;price for electricity;energy supply industry;structural adjustment program;operation and management;quality of energy;high energy loss;limited regulatory capacity;Access to Electricity;performance and efficiency;asian financial crisis;electricity generation company;energy sector investment;state owned company;denial of access;amount of power;energy supply industries;absence of competition;independent regulatory body;generation capacity expansion;carbon dioxide emission;quality of governance;natural monopoly segment;Computable General Equilibrium;long term contract;panel data analysis;generation capacity increase;quality of regulation;reform process;electricity industry;fixed effect;



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Jamasb,Tooraj Nepal,Rabindra Timilsina,Govinda R.

A quarter century effort yet to come of age : a survey of power sector reforms in developing countries (English). Policy Research working paper,no. WPS 7330 Washington, D.C. : World Bank Group.