IDEAS home Printed from https://ideas.repec.org/p/ulb/ulbeco/2013-335116.html
   My bibliography  Save this paper

Does the ownership of utilities matter for social outcomes? A survey of the evidence for developing countries

Author

Listed:
  • Lisa Bagnoli
  • Salvador Bertomeu-Sanchez
  • Antonio Estache
  • Maria Vagliasindi

Abstract

This paper surveys the evidence on the relevance of the ownership choice for electricity and water and sanitation utilities with respect to access and affordability in developing countries. It shows that most of the widely quoted evidence is outdated and fails to reflect the long-term effects of choices made in the 1990s. The most recent data suggests that ownership affects social outcomes less than regulatory governance and market structure. The evidence is however not precise enough yet. More research is needed to determine how context and institutional constraints, including regulatory capacity, should influence ownership choices.

Suggested Citation

  • Lisa Bagnoli & Salvador Bertomeu-Sanchez & Antonio Estache & Maria Vagliasindi, 2021. "Does the ownership of utilities matter for social outcomes? A survey of the evidence for developing countries," ULB Institutional Repository 2013/335116, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:ulb:ulbeco:2013/335116
    Note: SCOPUS: ar.j
    as

    Download full text from publisher

    File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/335116/3/2021_JEPR_Postprint.pdf
    File Function: Œuvre complète ou partie de l'œuvre
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Luis Andres & José Luis Guasch & Sebastián Lopez Azumendi, 2009. "Regulatory Governance and Sector Performance: Methodology and Evaluation for Electricity Distribution in Latin America," Chapters, in: Claude Ménard & Michel Ghertman (ed.), Regulation, Deregulation, Reregulation, chapter 6, Edward Elgar Publishing.
    2. Anupama Sen, Rabindra Nepal, and Tooraj Jamasb, 2018. "Have Model, Will Reform? Assessing the Outcome of Electricity Reforms in Non-OECD Asia," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    3. Emmanuelle Auriol & Claude Crampes & Antonio Estache, 2021. "Regulating public services, bridging the gap between theory and practice," Post-Print hal-03473074, HAL.
    4. Katharina Gassner & Alexander Popov & Nataliya Pushak, 2009. "Does Private Sector Participation Improve Performance in Electricity and Water Distribution?," World Bank Publications - Books, The World Bank Group, number 6605.
    5. Bensch, Gunther, 2019. "The effects of market-based reforms on access to electricity in developing countries: a systematic review," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(2), pages 165-188.
    6. Bacon,Robert W., 2018. "Taking stock of the impact of power utility reform in developing countries : a literature review," Policy Research Working Paper Series 8460, The World Bank.
    7. Kosec, Katrina, 2014. "The child health implications of privatizing africa's urban water supply," Journal of Health Economics, Elsevier, vol. 35(C), pages 1-19.
    8. Omar Chisari & Germán Lambardi & Carlos A. Romero, 2009. "Choosing the extent of private partipation in public services: a computable general equilibrium perspective," Estudios Economicos, Universidad Nacional del Sur, Departamento de Economia, vol. 26(52), pages 29-48, january-j.
    9. Abramovsky,Laura Fernanda & Andres,Luis Alberto & Joseph,George & Rud,Juan Pablo & Sember,German Eduardo & Thibert,Michael David, 2020. "Study of the Distributional Performance of Piped Water Consumption Subsidies in 10 Developing Countries," Policy Research Working Paper Series 9245, The World Bank.
    10. Chisari, Omar & Estache, Antonio & Romero, Carlos, 1997. "Winners and losers from utility privatization in Argentina : lessons from a general equilibrium model," Policy Research Working Paper Series 1824, The World Bank.
    11. Imam, Mahmud I. & Jamasb, Tooraj & Llorca, Manuel, 2019. "Sector reforms and institutional corruption: Evidence from electricity industry in Sub-Saharan Africa," Energy Policy, Elsevier, vol. 129(C), pages 532-545.
    12. Sudeshna Ghosh Banerjee & Elvira Morella, 2011. "Africa's Water and Sanitation Infrastructure : Access, Affordability, and Alternatives," World Bank Publications - Books, The World Bank Group, number 2276.
    13. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2009. "Electricity Reforms In Mali: A Macro–Micro Analysis Of The Effects On Poverty And Distribution," South African Journal of Economics, Economic Society of South Africa, vol. 77(1), pages 127-147, March.
    14. Tooraj Jamasb & Rabindra Nepal & Govinda R. Timilsina, 2017. "A Quarter Century Effort Yet to Come of Age: A Survey of Electricity Sector Reform in Developing Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    15. Barbosa, Alexandro & Brusca, Isabel, 2015. "Governance structures and their impact on tariff levels of Brazilian water and sanitation corporations," Utilities Policy, Elsevier, vol. 34(C), pages 94-105.
    16. Prachitha John & Ashwin Mahalingam & Akash Deep & A. Thillairajan, 2015. "Impact of Private Sector Participation on access and quality of services: systematic review of evidence from the electricity, telecommunications and water supply sectors," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 7(1), pages 64-89, March.
    17. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    18. Sinan Küfeoglu & Michael Pollitt & Karim Anaya, 2018. "Electric Power Distribution in the World: Today and Tomorrow," Working Papers EPRG 1826, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    19. Lee,Alan David & Usman,Zainab, 2018. "Taking stock of the political economy of power sector reforms in developing countries : a literature review," Policy Research Working Paper Series 8518, The World Bank.
    20. Antonio Estache & Emili Grifell-Tatj�, 2013. "How (Un)Even was the Distribution of the Impacts of Mali's Water Privatisation across Stakeholders?," Journal of Development Studies, Taylor & Francis Journals, vol. 49(4), pages 483-499, April.
    21. de Halleux, Morgane & Estache, Antonio & Serebrisky, Tomas, 2020. "Governance choices and policy outcomes in the Latin American and caribbean electricity sector," Utilities Policy, Elsevier, vol. 67(C).
    22. Chisari, Omar & Estache, Antonio & Romero, Carlos, 1999. "Winners and Losers from the Privatization and Regulation of Utilities: Lessons from a General Equilibrium Model of Argentina," The World Bank Economic Review, World Bank, vol. 13(2), pages 357-378, May.
    23. Dorothee Boccanfuso & Antonio Estache & Luc Savard, 2009. "A Macro-Micro Analysis of the Effects of Electricity Reform in Senegal on Poverty and Distribution," Journal of Development Studies, Taylor & Francis Journals, vol. 45(3), pages 351-368.
    24. Gugler, Klaus & Rammerstorfer, Margarethe & Schmitt, Stephan, 2013. "Ownership unbundling and investment in electricity markets — A cross country study," Energy Economics, Elsevier, vol. 40(C), pages 702-713.
    25. George R.G. Clarke & Katrina Kosec & Scott Wallsten, 2009. "Has private participation in water and sewerage improved coverage? Empirical evidence from Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(3), pages 327-361.
    26. Nagayama, Hiroaki, 2007. "Effects of regulatory reforms in the electricity supply industry on electricity prices in developing countries," Energy Policy, Elsevier, vol. 35(6), pages 3440-3462, June.
    27. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2005. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 83-120, February.
    28. Nagayama, Hiroaki, 2009. "Electric power sector reform liberalization models and electric power prices in developing countries: An empirical analysis using international panel data," Energy Economics, Elsevier, vol. 31(3), pages 463-472, May.
    29. Marson, Marta & Savin, Ivan, 2015. "Ensuring Sustainable Access to Drinking Water in Sub Saharan Africa: Conflict Between Financial and Social Objectives," World Development, Elsevier, vol. 76(C), pages 26-39.
    30. Nauges, Celine & Whittington, Dale, 2017. "Evaluating the Performance of Alternative Municipal Water Tariff Designs: Quantifying the Tradeoffs between Equity, Economic Efficiency, and Cost Recovery," World Development, Elsevier, vol. 91(C), pages 125-143.
    31. Doll, Christopher N.H. & Pachauri, Shonali, 2010. "Estimating rural populations without access to electricity in developing countries through night-time light satellite imagery," Energy Policy, Elsevier, vol. 38(10), pages 5661-5670, October.
    32. Foster,Vivien & Witte,Samantha Helen, 2020. "Falling Short : A Global Survey of Electricity Tariff Design," Policy Research Working Paper Series 9174, The World Bank.
    33. Omar O. Chisari (ed.), 2007. "Regulatory Economics and Quantitative Methods," Books, Edward Elgar Publishing, number 12517.
    34. Fuente, David, 2019. "The design and evaluation of water tariffs: A systematic review," Utilities Policy, Elsevier, vol. 61(C).
    35. Herrera, Veronica, 2019. "Reconciling global aspirations and local realities: Challenges facing the Sustainable Development Goals for water and sanitation," World Development, Elsevier, vol. 118(C), pages 106-117.
    36. Vivien Foster & Anshul Rana, 2020. "Rethinking Power Sector Reform in the Developing World [Repenser la réforme du secteur de l’électricité dans les pays en développement]," World Bank Publications - Books, The World Bank Group, number 32335.
    37. Auriol,Emmanuelle & Crampes,Claude & Estache,Antonio, 2021. "Regulating Public Services," Cambridge Books, Cambridge University Press, number 9781108833950, September.
    38. Granados, Claudia & Sánchez, Fabio, 2014. "Water Reforms, Decentralization and Child Mortality in Colombia, 1990–2005," World Development, Elsevier, vol. 53(C), pages 68-79.
    39. Saeed Solaymani & Fatimah Kari & Roza Hazly Zakaria, 2014. "Evaluating the Role of Subsidy Reform in Addressing Poverty Levels in Malaysia: A CGE Poverty Framework," Journal of Development Studies, Taylor & Francis Journals, vol. 50(4), pages 556-569, April.
    40. Fernando Borraz & Nicolás González Pampillón & Marcelo Olarreaga, 2013. "Water Nationalization and Service Quality," The World Bank Economic Review, World Bank, vol. 27(3), pages 389-412.
    41. Vagliasindi, Maria, 2012. "Power market structure and performance," Policy Research Working Paper Series 6123, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Coluccia, Benedetta & Barbieri, Roberta & Palmi, Pamela & Natale, Francesco, 2024. "Public ownership and ESG policies: implications for firm productivity in local transportation," Utilities Policy, Elsevier, vol. 89(C).
    2. Carvalho Solino Silva, Larissa & Teixeira, Gibran da Silva & Nobre Fernandez, Rodrigo & Halmenschlager, Vinícius, 2024. "Concessions for basic sanitation services in Southern Brazil: A generalized synthetic control analysis," Utilities Policy, Elsevier, vol. 87(C).
    3. Bagnoli, Lisa & Bertoméu-Sánchez, Salvador, 2022. "How effective has the electricity social rate been in reducing energy poverty in Spain?," Energy Economics, Elsevier, vol. 106(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lisa Bagnoli & Salvador Bertomeu & Antonio Estache & Maria Vagliasindi, 2020. "Are the Poor Better Off with Public or Private Utilities ?A Survey of the Academic Evidence on Developing Economies," Working Papers ECARES 2020-24, ULB -- Universite Libre de Bruxelles.
    2. Jamasb,Tooraj & Nepal,Rabindra & Timilsina,Govinda R., 2015. "A quarter century effort yet to come of age : a survey of power sector reforms in developing countries," Policy Research Working Paper Series 7330, The World Bank.
    3. Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    4. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    5. Tooraj Jamasb & Rabindra Nepal & Govinda R. Timilsina, 2017. "A Quarter Century Effort Yet to Come of Age: A Survey of Electricity Sector Reform in Developing Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    6. Dertinger, Andrea & Hirth, Lion, 2020. "Reforming the electric power industry in developing economies evidence on efficiency and electricity access outcomes," Energy Policy, Elsevier, vol. 139(C).
    7. Imam, Mahmud I. & Jamasb, Tooraj & Llorca, Manuel, 2019. "Sector reforms and institutional corruption: Evidence from electricity industry in Sub-Saharan Africa," Energy Policy, Elsevier, vol. 129(C), pages 532-545.
    8. Lisa Bagnoli & Salvador Bertomeu & Antonio Estache, 2020. "How does the Ownership of Electricity Distribution relate to Energy Poverty in Latin America and the Caribbean ?," Working Papers ECARES 2020-37, ULB -- Universite Libre de Bruxelles.
    9. Dertinger, Andrea & Hirth, Lion, 2019. "Reforming the Electric Power Industry in Developing Economies," EconStor Preprints 201842, ZBW - Leibniz Information Centre for Economics.
    10. Antonio Estache, 2020. "Infrastructure “Privatization”: When Ideology Meets Evidence," Working Papers ECARES 2020-28, ULB -- Universite Libre de Bruxelles.
    11. Nepal, Rabindra & Phoumin, Han & Musibau, Hammed & Jamasb, Tooraj, 2022. "The socio-economic impacts of energy policy reform through the lens of the power sector – Does cross-sectional dependence matter?," Energy Policy, Elsevier, vol. 167(C).
    12. Philippe Marin, 2009. "Public-Private Partnerships for Urban Water Utilities : A Review of Experiences in Developing Countries," World Bank Publications - Books, The World Bank Group, number 2703.
    13. Kathuria, Vinish, 2021. "Impact of institutional reforms on the performance of distribution utilities in India – A dynamic panel data analysis," Energy Policy, Elsevier, vol. 158(C).
    14. Antonio Estache & Caroline Philippe, 2012. "The Impact of Private Participation in Infrastructure in Developing Countries: Taking Stock of about 20 Years of Experience," Working Papers ECARES ECARES 2012-043, ULB -- Universite Libre de Bruxelles.
    15. Bastianin, Andrea & Castelnovo, Paolo & Florio, Massimo, 2018. "Evaluating regulatory reform of network industries: a survey of empirical models based on categorical proxies," Utilities Policy, Elsevier, vol. 55(C), pages 115-128.
    16. Adwoa Asantewaa & Tooraj Jamasb & Manuel Llorca, 2022. "Electricity Sector Reform Performance in Sub-Saharan Africa: A Parametric Distance Function Approach," Energies, MDPI, vol. 15(6), pages 1-29, March.
    17. Bayliss, Kate & Pollen, Gabriel, 2021. "The power paradigm in practice: A critical review of developments in the Zambian electricity sector," World Development, Elsevier, vol. 140(C).
    18. Marcela Meléndez & Andrés Gómez-Lobo Echeñique, 2007. "Social Policy, Regulation and Private Sector water supply: the case of Colombia," Working Papers wp252, University of Chile, Department of Economics.
    19. Anupama Sen & Rabindra Nepal & Tooraj Jamasb, 2018. "Have Model, Will Reform: Assessing the Outcomes of Electricity Reforms in Non-OECD Asia," The Energy Journal, , vol. 39(4), pages 181-209, July.
    20. Parker, David & Kirkpatrick, Colin & Figueira-Theodorakopoulou, Catarina, 2008. "Infrastructure regulation and poverty reduction in developing countries: A review of the evidence and a research agenda," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(2), pages 177-188, May.

    More about this item

    Keywords

    access; affordability; Privatization; regulation; utilities;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ulb:ulbeco:2013/335116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Benoit Pauwels (email available below). General contact details of provider: https://edirc.repec.org/data/ecsulbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.