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Asymmetric effects of electricity regulatory reforms in the EU15 and in the New Member States: Empirical evidence from residential prices 1990–2011

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  • Bacchiocchi, Emanuele
  • Florio, Massimo
  • Taveggia, Giulia

Abstract

This paper shows that there are asymmetric effects of regulatory reforms within two country groups in the EU. We consider the EU27 countries, and update and enlarge the OECD/ETCR regulatory country indicators up to year 2011. When distinguishing between EU15 countries and New Member States (NMS), we find that market liberalization reduces the price of energy in the EU15 countries, while having the opposite effect for the NMS. The paper concludes that the uniform electricity market reforms in the EU apparently have had different effects between the EU15 and the NMS. This asymmetric shock is not at variance with the principles of market opening, given the different starting points, but may in turn call for different policy responses, as consumers in some NMS have faced significant price increases in a relatively short period of time.

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  • Bacchiocchi, Emanuele & Florio, Massimo & Taveggia, Giulia, 2015. "Asymmetric effects of electricity regulatory reforms in the EU15 and in the New Member States: Empirical evidence from residential prices 1990–2011," Utilities Policy, Elsevier, vol. 35(C), pages 72-90.
    • Handle: RePEc:eee:juipol:v:35:y:2015:i:c:p:72-90
    DOI: 10.1016/j.jup.2015.07.002
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    3. Paul, Satya & Shankar, Sriram, 2022. "Regulatory reforms and the efficiency and productivity growth in electricity generation in OECD countries," Energy Economics, Elsevier, vol. 108(C).
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    5. Clò, Stefano & Ferraris, Matteo & Florio, Massimo, 2017. "Ownership and environmental regulation: Evidence from the European electricity industry," Energy Economics, Elsevier, vol. 61(C), pages 298-312.
    6. Cassetta, Ernesto & Nava, Consuelo R. & Zoia, Maria Grazia, 2022. "EU electricity market integration and cross-country convergence in residential and industrial end-user prices," Energy Policy, Elsevier, vol. 165(C).
    7. Andrea Bastianin & Paolo Castelnovo & Massimo Florio, 2017. "The Empirics of Regulatory Reforms Proxied by Categorical Variables: Recent Findings and Methodological Issues," Working Papers 2017.22, Fondazione Eni Enrico Mattei.
    8. Manto LAMPROPOULOU, 2018. "State‐Owned Enterprises In Greece: The Evolution Of A Paradigm 1996–2016," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(3), pages 491-526, September.
    9. Kotzebue, Julia R. & Weissenbacher, Manfred, 2020. "The EU's Clean Energy strategy for islands: A policy perspective on Malta's spatial governance in energy transition," Energy Policy, Elsevier, vol. 139(C).
    10. del-Río, Belén & Fernández-Sainz, Ana & Martinez de Alegria, Itziar, 2019. "Industrial electricity prices in the European Union following restructuring: A comparative panel-data analysis," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    11. Noemí Peña-Miguel & Beatriz Cuadrado-Ballesteros, 2021. "Effect of privatisation on income inequality: a European analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(3), pages 697-716, August.
    12. Matuszak, Piotr & Kabaciński, Bartosz, 2021. "Non-commercial goals and financial performance of state-owned enterprises – some evidence from the electricity sector in the EU countries," Journal of Comparative Economics, Elsevier, vol. 49(4), pages 1068-1087.

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    More about this item

    Keywords

    Electricity market reforms; Liberalization; Privatization; ETCR indicators;
    All these keywords.

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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