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Regulation, efficiency and equilibrium: A general equilibrium analysis of liberalization in the Turkish electricity market

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  • Akkemik, K. Ali
  • Oğuz, Fuat

Abstract

Turkish electricity sector has been undergoing significant regulatory reforms since 2001 and competition was introduced to some extent. This paper examines potential impacts of full liberalization on efficiency and competition in the electricity market using an applied computable general equilibrium (CGE) model and a counter-factual simulation. Simulation results imply enhanced efficiency in the electricity sector, reduced household energy prices, and gains in output and welfare by 0.5–1.1 percent of GDP. The paper also explains possible factors that lead to differences between estimated effects and actual results. With changing institutional background and legal framework, political pressures tend to dominate efficiency gains.

Suggested Citation

  • Akkemik, K. Ali & Oğuz, Fuat, 2011. "Regulation, efficiency and equilibrium: A general equilibrium analysis of liberalization in the Turkish electricity market," Energy, Elsevier, vol. 36(5), pages 3282-3292.
    • Handle: RePEc:eee:energy:v:36:y:2011:i:5:p:3282-3292
    DOI: 10.1016/j.energy.2011.03.024
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