| By: |
Pobochy Serguey;
Yudashkina Galina |
| Abstract: |
This paper estimates regional features of the electricity sector regulation in
Russia. We use panel data for 77 Russian regions during 1998–2003. Our
analysis is based on the interest-group theory of regulation. The objective of
the project is to estimate the influence of regional energy company,
consumers, and governor on regulation policy in the region. Empirical analysis
shows that governors' elections are accompanied by tariffs' decrease. We found
that during 1999–2001 there was a gap between federal and regional regulation,
and that energy-intensive enterprises choose the strategy to buy electricity
from federal wholesale market, but not to bargain with regional regulator
about low tariffs. Based on our analysis we conclude that it is necessary to
separate social and economic parameters of regulation. Economic requirements
call for the change of pricing method to "rate of return" approach that will
stimulate monopolist to increase efficiency. Social requirements should
incorporate in regulation mechanisms of taking into account the poverty level
in a given region. |
| Keywords: |
Russia, Russian regions, electricity sector, regulation, interest-group theory, regional governors, panel data analysis |
| JEL: |
L94 L51 |
| Date: |
2006–02–13 |
| URL: |
http://d.repec.org/n?u=RePEc:eer:wpalle:05-15e&r=cis |