OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Regulation, Industry Structure and Performance in the Electricity Supply Industry

This paper seeks to assess the impact of liberalisation and privatisation on performance in the generation segment of the electricity supply industry. Regulatory indicators for a panel of 19 OECD countries over a 10 year time period were constructed to examine the influence of regulatory reform on efficiency and price, and to assess the relative efficacy of different reform strategies. The presence of data with both cross-country and time-series dimensions allows separate identification of country specific and regulatory effects. The primary findings are that while changes in legal rules may be slow to translate into changes in conduct, unbundling of generation, private ownership, expanded access to transmission networks, and the introduction of electricity markets impact the performance measures in a statistically significant way ...


Keywords: models with panel data, industrial policy, electric utilities, public enterprises, government policy (energy), regulated industries and administrative law, economics of regulation
JEL: L94: Industrial Organization / Industry Studies: Transportation and Utilities / Electric Utilities; L32: Industrial Organization / Nonprofit Organizations and Public Enterprise / Public Enterprises; Public-Private Enterprises; L51: Industrial Organization / Regulation and Industrial Policy / Economics of Regulation; C23: Mathematical and Quantitative Methods / Single Equation Models; Single Variables / Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models; K23: Law and Economics / Regulation and Business Law / Regulated Industries and Administrative Law; Q48: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Energy: Government Policy; L52: Industrial Organization / Regulation and Industrial Policy / Industrial Policy; Sectoral Planning Methods
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