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Regulation of the electricity industry in Bolivia: Its impact on access to the poor, prices and quality

Author

Listed:
  • Bojanic, Antonio
  • Krakowski, Michael
Abstract
This paper takes stock with the results of utility privatization in Bolivia. This paper deals with the process of structural reforms in this country and the specific results that have to date been accomplished in the electricity industry. It is mostly interested in exploring whether the reformation of this industry contributed to lessen poverty levels and whether in light of the obtained results, a reversal or a continuation of the reform process should take place. The paper shows that coverage of electricity users has grown faster in urban areas ever since the establishment of regulation. Although it is not argued that regulation has caused the increase in electricity consumers, the data does show that a comparatively faster urban growth rate of users takes place after 1995. In this sense, it seems plausible that regulation of the electricity industry has indeed lessen poverty levels in urban Bolivia by making this utility more accessible to larger segments of the urban population. The same cannot be said, however, about rural Bolivia. The results show that coverage has remained about the same in the last 10 years, with no discernible improvement after the transformation of the industry in 1995. When rural Bolivia is divided into income groups, the data shows that some of the poorest groups have indeed experienced a decline in coverage during the regulation period, which sheds doubts about the purportedly positive effects that structural changes in this industry were to have in the livelihoods of the poorest people in the country. Alternative ways which may improve the poverty reduction outcome of electricity regulation are explored.

Suggested Citation

  • Bojanic, Antonio & Krakowski, Michael, 2003. "Regulation of the electricity industry in Bolivia: Its impact on access to the poor, prices and quality," HWWA Discussion Papers 250, Hamburg Institute of International Economics (HWWA).
    • Handle: RePEc:zbw:hwwadp:26201
    as

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    References listed on IDEAS

    as
    1. Gover Barja & Miguel Urquiola, 2003. "Capitalization, regulation and the poor: access to basic services in Bolivia," Chapters, in: Cecilia Ugaz (ed.), Utility Privatization and Regulation, chapter 9, Edward Elgar Publishing.
    2. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    3. Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 3-39, January.
    4. Estache, Antonio & Gomez-Lobo, Andres & Leipziger, Danny, 2001. "Utilities Privatization and the Poor: Lessons and Evidence from Latin America," World Development, Elsevier, vol. 29(7), pages 1179-1198, July.
    5. Ajwad, Mohamed Ihsan & Wodon, Quentin, 2007. "Do local Governments maximize access rates to public services across areas?: A test based on marginal benefit incidence analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(2), pages 242-260, May.
    6. Krakowski, Michael, 2003. "Poverty Reduction Strategy Papers in Latin America: The Case of Bolivia," Report Series 26106, Hamburg Institute of International Economics.
    7. Kuczynski, Pedro-Pablo & John Williamson (ed.), 2003. "After the Washington Consensus: Restarting Growth and Reform in Latin America," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 350, April.
    8. Krakowski, Michael, 2003. "Poverty reduction strategy papers in Latin America: The case of Bolivia," HWWA Reports 230, Hamburg Institute of International Economics (HWWA).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Regulation; Poverty Reduction; Bolivia;
    All these keywords.

    JEL classification:

    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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