Revisiting electricity liberalization and quality of service: empirical evidence from New Zealand

Nepal, Rabindra, Carvalho, Antonio and Foster, John (2015) Revisiting electricity liberalization and quality of service: empirical evidence from New Zealand. Applied Economics, 48 25: 2309-2320. doi:10.1080/00036846.2015.1119789


Author Nepal, Rabindra
Carvalho, Antonio
Foster, John
Title Revisiting electricity liberalization and quality of service: empirical evidence from New Zealand
Journal name Applied Economics   Check publisher's open access policy
ISSN 1466-4283
0003-6846
Publication date 2015-12-07
Year available 2015
Sub-type Article (original research)
DOI 10.1080/00036846.2015.1119789
Open Access Status Not yet assessed
Volume 48
Issue 25
Start page 2309
End page 2320
Total pages 12
Place of publication Abingdon, Oxon, United Kingdom
Publisher Routledge
Language eng
Subject 2002 Economics and Econometrics
Abstract What effect does the firm structure have on the quality of service delivered by networks and infrastructure industries? We answer this question by empirically assessing the impacts of complete vertical separation, such as ownership unbundling, on the quality of service delivered by a liberalized network industry. Electricity distribution utilities in New Zealand are considered for this purpose and are analysed using panel-data econometrics. The results show robust evidence that ownership unbundling contributed to a fall in the duration and frequency of supply interruptions in electricity distribution. However, the results also show that unbundling has no effect on reducing distribution network losses. These results, overall, highlight the nonsimple impacts of ownership unbundling on the quality of electricity distribution. We suggest that the quality of service may largely improve when considered in the economic regulation of electricity networks than completely relying on specific reform measures such as ownership unbundling.
Keyword Unbundling
Ownership
Quality
Regulation
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
School of Economics Publications
 
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