Abstract
This chapter discusses the reform and restructuring of energy industries and presents the issues related to these structural changes in the energy industry. The chapter starts with a discussion about the economic rationale for government intervention in the energy sector, and the changes that weakened these arguments. Alternative reform models are then presented along with their pros and cons. It also presents a set of factors that determine the substainability of any reform.
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Notes
- 1.
A public good is characterised by non-exclusivity and non-rivalry. Non-exclusivity implies that it is difficult to exclude others from using the good or service without withholding the good or service. Non-rivalry on the other hand means that consumption by one does not reduce its potential to be used by others.
- 2.
- 3.
See also RAP (2000).
- 4.
This consists of (a) identifying the objectives and constraints of reform , (b) analysing how these are taken care of and identifying the threat to reform and (c) to suggest improvements/modifications to remove the threats.
- 5.
These include credibility of the regulator, use of simple instruments, avoiding problems of euphoria or pessimism, etc.
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Bhattacharyya, S.C. (2019). Reform of the Energy Sector. In: Energy Economics. Springer, London. https://doi.org/10.1007/978-1-4471-7468-4_27
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DOI: https://doi.org/10.1007/978-1-4471-7468-4_27
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