Erdogdu, Erkan (2011): Determinants of successful electricity market reform.
Download (489Kb) | Preview
The paper explores whether the question of why some countries are able to implement more extensive reforms is closely related to the question of why some countries have better institutions than others. We analyse this question by using empirical econometric models with cross-section data covering 51 countries. The results show that both the background of the regulator and the energy minister and the institutional endowments of a country are important determinants of how far reforms have gone in a country. Our results suggest that the best first chairman of a regulatory agency, in terms of reform progress, seems to be one with a degree in law or engineering and one with a long period in office. The best minister responsible for energy policy when regulator is set up is, on the other hand, one with a degree in business or economics and one who has as little experience in the electricity industry as possible and does not have a degree in law. The results also put forward that any improvement in the structure of the legal system, security of property rights, democracy or investment environment positively contributes to the reform progress in a country. However, there seems to be a negative relationship between reform progress and both civil liberties and political rights.
|Item Type:||MPRA Paper|
|Original Title:||Determinants of successful electricity market reform|
|Keywords:||Electricity market reform; new institutional economics; Poisson regression|
|Subjects:||L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities|
|Depositing User:||Erkan Erdogdu|
|Date Deposited:||28. Apr 2012 03:21|
|Last Modified:||14. Feb 2013 14:18|
CAMERON, A. C. & TRIVEDI, P. K. 1998. Regression analysis of count data, Cambridge, UK ; New York, NY, USA, Cambridge University Press.
CAMERON, A. C. & TRIVEDI, P. K. 2009. Microeconometrics using Stata, College Station, Tex., Stata Press.
CENTER FOR SYSTEMIC PEACE 2010. Polity IV Project: Political Regime Characteristics and Transitions, 1800-2009. URL: http://www.systemicpeace.org/polity/polity4.htm.
ERDOGDU, E. 2010. Electricity market reform: lessons for developing counties. Cambridge, UK: Judge Business School: Library Office.
ERDOGDU, E. 2011. The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: A cross country panel data analysis. Energy Policy, 39, 1080-1092.
FREEDOM HOUSE 2011. Map of Freedom in the World, 2008 Edition. Freedom House.
GWARTNEY, J. D., HALL, J. C. & LAWSON, R. 2010. Economic Freedom of the World: 2010 Annual Report. Fraser Institute.
HERITAGE FOUNDATION 2011. Index of Economic Freedom, Investment Freedom Index. Heritage Foundation.
LITTLECHILD, S. C. & SKERK, C. J. 2004. Regulation of transmission expansion in Argentina Part I: State ownership, reform and the Fourth Line. Cambridge Working Papers in Economics, CWPE 0464. Faculty of Economics, University of Cambridge.
WINKELMANN, R. 2008. Econometric analysis of count data, Berlin, Springer.
WOOLDRIDGE, J. M. 2009. Introductory econometrics : a modern approach, Mason, OH, South Western, Cengage Learning.
WORLD BANK 1995. Bureaucrats in business : the economics and politics of government ownership, Oxford ; New York, Oxford University Press.
WORLD BANK 2010. World Development Indicators (Edition: April 2010).