‘Electricity Sector Reform in Developing Countries: A Survey of Empirical Evidence on Determinants and Performance’ (original) (raw)
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2005
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More than two decades have passed since the start of the worldwide marketoriented electricity sector reforms. The reforms have varied in terms of structure, market mechanisms, and regulation. However, the passage of time calls for taking stock of the performance of the reforms in developing countries. This paper surveys the empirical literature on electricity sector reforms and draws some conclusions with a view to the future. Overall, the reforms have tended to improve the technical efficiency of the sector. The macroeconomic benefits of reforms are less clear and remain difficult to identify. Also, the gains from the reforms have often not trickled down to consumers because of institutional and regulatory weaknesses. In order to achieve lasting benefits, reforms need to adopt measures that align their pursuit of economic efficiency with those of equity and provision of access. Reforms can deliver more economic benefits and alleviate poverty when the poor have access to electricity. New technologies and institutional capacity building can help improve the performance of reforms.
International Journal of Regulation and Governance, 2006
C Co o r re e I In nd d i ic ca at to o r rs s f fo o r r D De e t te er rm mi in na an nt ts s a a n nd d P Pe e r rf fo o r rm ma an nc ce e o o f f t th he e E El le e c ct tr ri ic ci it ty y S Se ec ct to o r r i in n D De ev ve e l WPS3599 C Co o r re e I In nd di i c ca at to or rs s f fo or r D De e t te e r rm m i in na an nt ts s a an nd d P Pe e r rf fo or rm m a an nc ce e o of f E El le ec ct tr ri i c ci it t y y S Se ec c t to or r R Re ef fo or rm m i in n D D e ev ve el lo op pi in ng g C Co ou un nt tr r i ie e s s 1 Abstract Since the early 1990s, substantial resources and efforts have been spent on implementing market-oriented electricity reforms in developing countries. While there are important sectoral, economic, and social dimensions involved in electricity reform, empirical analysis and evaluation of reforms have been of limited use for testing the economic rationale of reforms and policy advice. This may partly be attributed to a lack of generally accepted and measured indicators for monitoring the progress, impacts, and performance of reforms. In this paper we propose a set of indicators as a first step toward filling this gap and developing a coherent framework for studying electricity reform in developing countries that covers resource and institutional endowments, key reform steps, market structure, performance, and various impacts. JEL Classification: L52, L94, Q48 C Co o r re e I In nd di i c ca at to or rs s f fo or r D De e t te e r rm m i in na an nt ts s a an nd d P Pe e r rf fo or rm m a an nc ce e o of f E El le ec ct tr ri i c ci it t y y S Se ec c t to or r R Re ef fo or rm m i in n D D e ev ve el lo op pi in ng g C Co ou un nt tr r i ie e s s C Co o r re e I In nd di i c ca at to or rs s f fo or r D De e t te e r rm m i in na an nt ts s a an nd d P Pe e r rf fo or rm m a an nc ce e o of f E El le ec ct tr ri i c ci it t y y S Se ec c t to or r R Re ef fo or rm m i in n D D e ev ve el lo op pi in ng g C Co ou un nt tr r i ie e s s 2 Indicators reflect or represent the state of a phenomenon in the form of information. At the same time, indicators do not exist in isolation. Rather, they are often part of larger systems within which they assume their meaning. This system or framework may be presented in the form of more or less formal models. The following definition of an indicator in OECD (1993) is relevant here: "A parameter, or a value derived from parameters, which points to/provides information about/describes the state of a phenomenon/environment/area with a significance extending beyond that directly associated with a parameter value".
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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.
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