Regulation and Privatisation: The Case of Electricity
Date
01.01.1998
01.01.1998
Authors
Bernardo Bortolotti, Marcella Fantini, Domenico Siniscalco
JEL Code
G30,L51
G30,L51
Keywords:
Privatisation,Regulation
Privatisation,Regulation
Publisher
Energy: Resources and Markets
Energy: Resources and Markets
Editor
Fausto Panunzi
Fausto Panunzi
JOURNAL
Edward Elgar Publishing
Edward Elgar Publishing
This paper sheds some light about privatisation in utilities. An empirical analysis based on sales in the electricity sector in 38 countries for the period 1977-97 shows that regulation is a crucial institutional variable in privatisation. Not only does it allow governments to increase the pace of divestiture and to sell higher stakes, but it also maximises proceeds reducing regulatory risk. The revenues-efficiency trade-off loses some relevance in electricity privatisation.