Caught between theory and practice

TY - JOUR

T1 - Caught between theory and practice

T2 - Government, market, and regulatory failure in electricity sector reforms

AU - Nepal, Rabindra

N1 - This article was published before R Nepal was a CDU staff member.

PY - 2015/6

Y1 - 2015/6

N2 - Electricity sector in many developing countries since the early 1990s have revealed the complexities of introducing market-based reforms in network and infrastructure industries. This paper reflects on the experience to date with the process and outcomes of electricity reforms in smaller electricity systems of less-developed and transition economies. In particular, we use case studies of Belarus and Nepal, two countries that in many respects reflect the current state of reform efforts but have not received much scrutiny in the literature. The evidence suggests similarities in the electricity sectors of less-developed and transition economies, even though the contexts vary significantly. The need to balance economic efficiency, sustainability and social equity, and to maintain adequate investment, remains challenging despite more than two decades of experience with reforms. The dynamics of the electricity supply industry and policy objectives imply that reforms evolve continuously and thus remain work in progress, and their success or failure is a complex function of micro- and macro-economic as well as institutional factors.

AB - Electricity sector in many developing countries since the early 1990s have revealed the complexities of introducing market-based reforms in network and infrastructure industries. This paper reflects on the experience to date with the process and outcomes of electricity reforms in smaller electricity systems of less-developed and transition economies. In particular, we use case studies of Belarus and Nepal, two countries that in many respects reflect the current state of reform efforts but have not received much scrutiny in the literature. The evidence suggests similarities in the electricity sectors of less-developed and transition economies, even though the contexts vary significantly. The need to balance economic efficiency, sustainability and social equity, and to maintain adequate investment, remains challenging despite more than two decades of experience with reforms. The dynamics of the electricity supply industry and policy objectives imply that reforms evolve continuously and thus remain work in progress, and their success or failure is a complex function of micro- and macro-economic as well as institutional factors.

U2 - 10.1016/j.eap.2015.03.001

DO - 10.1016/j.eap.2015.03.001

M3 - Article

VL - 46

SP - 16

EP - 24

JO - Economic Analysis and Policy

JF - Economic Analysis and Policy

SN - 0313-5926

ER -