IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v164y2022ics0301421522001616.html
   My bibliography  Save this article

Trade-offs and synergies in power sector policy mixes: The case of Uttar Pradesh, India

Author

Listed:
  • Malhotra, Abhishek

Abstract

Policymakers in the electricity sector in several developing countries must perform a balancing act between ensuring financial viability of utilities, extending electricity access and minimizing the environmental impact of electricity supply. However, it is often not clear how multiple policy goals and instruments in an electricity sector policy mix interact with each other in a dynamic manner. This study uses a mixed-method approach to analyze synergies and trade-offs between policies for financial reform of utilities, extending electricity access, and solar PV deployment in the case of Uttar Pradesh in India. First, it uses qualitative methods to trace the evolution of Uttar Pradesh's electricity sector policy mix from 2012 to 2018 and to highlight key interactions therein. Second, it uses financial modeling to analyze the impact of the identified key interactions on utilities' financial performance from 2019 to 2022. The study finds that the policies often do not consider their mutual interactions, even though policy design and sequencing can have a major role in determining policy outcomes. Thus, this study provides recommendations on how to develop a more integrated approach to policy mix design in the electricity sector. Ex-ante assessments of policy mixes that take into account multiple policy goals, instruments as well as their sequencing could prove to be particularly fruitful.

Suggested Citation

  • Malhotra, Abhishek, 2022. "Trade-offs and synergies in power sector policy mixes: The case of Uttar Pradesh, India," Energy Policy, Elsevier, vol. 164(C).
    • Handle: RePEc:eee:enepol:v:164:y:2022:i:c:s0301421522001616
    DOI: 10.1016/j.enpol.2022.112936
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421522001616
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2022.112936?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Huenteler,Joern Torsten & Hankinson,Denzel J. & Rosenthal,Nicole & Balabanyan,Ani & Kochnakyan,Arthur & Nguyen,Tu Chi & Rana,Anshul & Foster,Vivien, 2020. "Cost Recovery and Financial Viability of the Power Sector in Developing Countries : Insights from 15 Case Studies," Policy Research Working Paper Series 9136, The World Bank.
    2. Nepal, Rabindra & Jamasb, Tooraj, 2015. "Caught between theory and practice: Government, market, and regulatory failure in electricity sector reforms," Economic Analysis and Policy, Elsevier, vol. 46(C), pages 16-24.
    3. Levy, Brian, 2014. "Working with the Grain: Integrating Governance and Growth in Development Strategies," OUP Catalogue, Oxford University Press, number 9780199363810.
    4. Helm, Dieter, 2002. "Energy policy: security of supply, sustainability and competition," Energy Policy, Elsevier, vol. 30(3), pages 173-184, February.
    5. Benjamin Cashore & Michael Howlett, 2007. "Punctuating Which Equilibrium? Understanding Thermostatic Policy Dynamics in Pacific Northwest Forestry," American Journal of Political Science, John Wiley & Sons, vol. 51(3), pages 532-551, July.
    6. Tooraj Jamasb & Rabindra Nepal & Govinda R. Timilsina, 2017. "A Quarter Century Effort Yet to Come of Age: A Survey of Electricity Sector Reform in Developing Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    7. Joeri Rogelj & Michel den Elzen & Niklas Höhne & Taryn Fransen & Hanna Fekete & Harald Winkler & Roberto Schaeffer & Fu Sha & Keywan Riahi & Malte Meinshausen, 2016. "Paris Agreement climate proposals need a boost to keep warming well below 2 °C," Nature, Nature, vol. 534(7609), pages 631-639, June.
    8. Huenteler,Joern Torsten & Dobozi,Istvan & Balabanyan,Ani & Banerjee,Sudeshna Ghosh & Huenteler,Joern Torsten & Dobozi,Istvan & Balabanyan,Ani & Banerjee,Sudeshna Ghosh, 2017. "Cost recovery and financial viability of the power sector in developing countries : a literature review," Policy Research Working Paper Series 8287, The World Bank.
    9. Robert Bacon, 1999. "A Scorecard for Energy Reform in Developing Countries," World Bank Publications - Reports 11487, The World Bank Group.
    10. Schmidt, Tobias S. & Sewerin, Sebastian, 2019. "Measuring the temporal dynamics of policy mixes – An empirical analysis of renewable energy policy mixes’ balance and design features in nine countries," Research Policy, Elsevier, vol. 48(10).
    11. Williams, J.H. & Ghanadan, R., 2006. "Electricity reform in developing and transition countries: A reappraisal," Energy, Elsevier, vol. 31(6), pages 815-844.
    12. Kemp, René & Pontoglio, Serena, 2011. "The innovation effects of environmental policy instruments — A typical case of the blind men and the elephant?," Ecological Economics, Elsevier, vol. 72(C), pages 28-36.
    13. Rabindra, Nepal & Tooraj, Jamasb, 2013. "Caught Between Theory and Practice: Government, Market, and Regulatory Failure in Electricity Sector Reforms," SIRE Discussion Papers 2013-22, Scottish Institute for Research in Economics (SIRE).
    14. Gratwick, Katharine Nawaal & Eberhard, Anton, 2008. "Demise of the standard model for power sector reform and the emergence of hybrid power markets," Energy Policy, Elsevier, vol. 36(10), pages 3948-3960, October.
    15. Mohua Mukherjee, 2014. "Private Participation in the Indian Power Sector : Lessons from Two Decades of Experience," World Bank Publications - Books, The World Bank Group, number 20410.
    16. Wamukonya, Njeri, 2003. "Power sector reform in developing countries: mismatched agendas," Energy Policy, Elsevier, vol. 31(12), pages 1273-1289, September.
    17. Quitzow, Rainer, 2015. "Assessing policy strategies for the promotion of environmental technologies: A review of India's National Solar Mission," Research Policy, Elsevier, vol. 44(1), pages 233-243.
    18. Eid, Cherrelle & Reneses Guillén, Javier & Frías Marín, Pablo & Hakvoort, Rudi, 2014. "The economic effect of electricity net-metering with solar PV: Consequences for network cost recovery, cross subsidies and policy objectives," Energy Policy, Elsevier, vol. 75(C), pages 244-254.
    19. Michael Howlett, 2009. "Governance modes, policy regimes and operational plans: A multi-level nested model of policy instrument choice and policy design," Policy Sciences, Springer;Society of Policy Sciences, vol. 42(1), pages 73-89, February.
    20. Gunningham, Neil, 2013. "Managing the energy trilemma: The case of Indonesia," Energy Policy, Elsevier, vol. 54(C), pages 184-193.
    21. Singh, Anoop, 2006. "Power sector reform in India: current issues and prospects," Energy Policy, Elsevier, vol. 34(16), pages 2480-2490, November.
    22. Michael Howlett & Jeremy Rayner, 2013. "Patching vs Packaging in Policy Formulation: Assessing Policy Portfolio Design," Politics and Governance, Cogitatio Press, vol. 1(2), pages 170-182.
    23. Rogge, Karoline S. & Reichardt, Kristin, 2016. "Policy mixes for sustainability transitions: An extended concept and framework for analysis," Research Policy, Elsevier, vol. 45(8), pages 1620-1635.
    24. Florian Kern & Michael Howlett, 2009. "Implementing transition management as policy reforms: a case study of the Dutch energy sector," Policy Sciences, Springer;Society of Policy Sciences, vol. 42(4), pages 391-408, November.
    25. Peter Alstone & Dimitry Gershenson & Daniel M. Kammen, 2015. "Decentralized energy systems for clean electricity access," Nature Climate Change, Nature, vol. 5(4), pages 305-314, April.
    26. Benedict Probst & Vasilios Anatolitis & Andreas Kontoleon & Laura Díaz Anadón, 2020. "The short-term costs of local content requirements in the Indian solar auctions," Nature Energy, Nature, vol. 5(11), pages 842-850, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hille, Erik & Oelker, Thomas J., 2023. "International expansion of renewable energy capacities: The role of innovation and choice of policy instruments," Ecological Economics, Elsevier, vol. 204(PA).
    2. Jia, Zhijie & Liu, Yu & Lin, Boqiang, 2024. "The impossible triangle of carbon mitigation policy," Energy Policy, Elsevier, vol. 189(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asantewaa, Adwoa & Jamasb, Tooraj & Llorca, Manuel, 2022. "Reforming Small Electricity Systems: Market Design and Competition," Working Papers 12-2022, Copenhagen Business School, Department of Economics.
    2. Trotter, Philipp A. & Brophy, Aoife, 2022. "Policy mixes for business model innovation: The case of off-grid energy for sustainable development in sub-Saharan Africa," Research Policy, Elsevier, vol. 51(6).
    3. Rogge, Karoline S. & Schleich, Joachim, 2018. "Do policy mix characteristics matter for low-carbon innovation? A survey-based exploration of renewable power generation technologies in Germany," Research Policy, Elsevier, vol. 47(9), pages 1639-1654.
    4. Nuñez-Jimenez, Alejandro & Knoeri, Christof & Hoppmann, Joern & Hoffmann, Volker H., 2022. "Beyond innovation and deployment: Modeling the impact of technology-push and demand-pull policies in Germany's solar policy mix," Research Policy, Elsevier, vol. 51(10).
    5. Edmondson, Duncan L. & Kern, Florian & Rogge, Karoline S., 2019. "The co-evolution of policy mixes and socio-technical systems: Towards a conceptual framework of policy mix feedback in sustainability transitions," Research Policy, Elsevier, vol. 48(10).
    6. Matsuo, Tyeler & Schmidt, Tobias S., 2019. "Managing tradeoffs in green industrial policies: The role of renewable energy policy design," World Development, Elsevier, vol. 122(C), pages 11-26.
    7. Kern, Florian & Rogge, Karoline S. & Howlett, Michael, 2019. "Policy mixes for sustainability transitions: New approaches and insights through bridging innovation and policy studies," Research Policy, Elsevier, vol. 48(10).
    8. Marijn T. Geet & Stefan Verweij & Tim Busscher & Jos Arts, 2021. "The importance of policy design fit for effectiveness: a qualitative comparative analysis of policy integration in regional transport planning," Policy Sciences, Springer;Society of Policy Sciences, vol. 54(3), pages 629-662, September.
    9. Liu, Yang & Zhang, Yuchen & Zhao, Xiaoli & Farnoosh, Arash & Ma, Ruoran, 2024. "Synergistic effect of environmental governance instruments embedded in social contexts: A case study of China," Ecological Economics, Elsevier, vol. 220(C).
    10. Weigelt, Carmen & Lu, Shaohua & Verhaal, J. Cameron, 2021. "Blinded by the sun: The role of prosumers as niche actors in incumbent firms’ adoption of solar power during sustainability transitions," Research Policy, Elsevier, vol. 50(9).
    11. Acciai, Claudia, 2021. "The politics of research and innovation: Understanding instrument choices in complex governance environments – the case of France and Italy," Research Policy, Elsevier, vol. 50(9).
    12. Omri Carmon & Itay Fischhendler, 2021. "A friction perspective for negotiating renewable energy targets: the Israeli case," Policy Sciences, Springer;Society of Policy Sciences, vol. 54(2), pages 313-344, June.
    13. Lana Ollier & Florence Metz & Alejandro Nuñez-Jimenez & Leonhard Späth & Johan Lilliestam, 2022. "The European 2030 climate and energy package: do domestic strategy adaptations precede EU policy change?," Policy Sciences, Springer;Society of Policy Sciences, vol. 55(1), pages 161-184, March.
    14. Schmidt, Tobias S. & Sewerin, Sebastian, 2019. "Measuring the temporal dynamics of policy mixes – An empirical analysis of renewable energy policy mixes’ balance and design features in nine countries," Research Policy, Elsevier, vol. 48(10).
    15. Karoline S. Rogge & Elisabeth Dütschke, 2017. "Exploring Perceptions of the Credibility of Policy Mixes: The Case of German Manufacturers of Renewable Power Generation Technologies," SPRU Working Paper Series 2017-23, SPRU - Science Policy Research Unit, University of Sussex Business School.
    16. Fleck, Ann-Katrin & Anatolitis, Vasilios, 2023. "Achieving the objectives of renewable energy policy – Insights from renewable energy auction design in Europe," Energy Policy, Elsevier, vol. 173(C).
    17. Hilde Nykamp, 2020. "Policy Mix for a Transition to Sustainability: Green Buildings in Norway," Sustainability, MDPI, vol. 12(2), pages 1-17, January.
    18. Berthet, Alice & Vincent, Audrey & Fleury, Philippe, 2021. "Water quality issues and agriculture: An international review of innovative policy schemes," Land Use Policy, Elsevier, vol. 109(C).
    19. Shyu, Chian-Woei, 2024. "Referendum as a policy instrument to enhance energy democracy in formulating energy transition path, agenda, and policies: A case study of Taiwan's referendums in 2018 and 2021," Energy Policy, Elsevier, vol. 184(C).
    20. Ladu, Luana & Imbert, Enrica & Quitzow, Rainer & Morone, Piergiuseppe, 2020. "The role of the policy mix in the transition toward a circular forest bioeconomy," Forest Policy and Economics, Elsevier, vol. 110(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:164:y:2022:i:c:s0301421522001616. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.