Core indicators for determinants and performance of electricity sector reform in developing countries

Abstract

Since the early 1990s, substantial resources and efforts have gone into implementing market-oriented electricity reforms in developing countries. While several important sectoral, economic, and social dimensions are involved in the process of electricity reform, empirical analysis and evaluation of reforms have been of limited value in testing the economic rationale of reforms and policy advice. This may partly be attributed to a lack of generally accepted and measured indicators for monitoring the progress, impacts, and performance of infrastructure reforms, in contrast to other areas such as health, education, environment, and sustainable development. In this paper we propose a set of indicators as a first step towards filling this gap and developing a coherent framework for studying electricity reform in developing countries covering resource and institutional endowments, key reform steps, market structure, performance as well as social, economic, and environmental impacts.