Regulatory Effectiveness: the impact of good regulatory governance on electricity industry capacity and efficiency in developing countries.

Stern, J and Cubbin, J (2004) Regulatory Effectiveness: the impact of good regulatory governance on electricity industry capacity and efficiency in developing countries. Working Paper. London Business School Regulation Initiative Working Paper Series.

Abstract

This paper assesses for 28 developing countries over the period 19802001 wheter the existence of a regulatory law and higher quality regulatory goverce are significantly associated with superior electricity outcomes. The analysis draws on theoretical and empirical work on the impact of independent central banks and of developing country telecommmunications regulators. The empirical analysis consludes that, controlling for other relevant variables and allowoing for country specific fixed effects, a regulatory law higher quality goverce is positively and significantly associated with higher per capita generation capacity levels and higher generation capacity utlisation rates. In addition, at least for three years or more, this positive regulatory impact appears to increase with experience.