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



Publication Year



This paper assesses for 28 developing countries over the period 1980-2001 wheter the existence of a regulatory law and higher quality regulatory governance 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 governance 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.

Publication Research Centre

Regulation Initiative (closed)

Series Number



Regulation Initiative Working Paper Series

Available on ECCH


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