Service Quality in the Electricity Industry: The Role of Privatization and Managerial Behavior

Energy Policy, Vol. 35, No. 12, pp. 6212-6224, December 2007

Posted: 18 May 2010

See all articles by Elena Fumagalli

Elena Fumagalli

Polytechnic University of Milan

Paola Garrone

Politecnico di Milano

Luca Grilli

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering

Date Written: September 16, 2007

Abstract

This paper analyses the relationship between privatization and service quality in the electricity industry, and tests the hypothesis that managerial behavior is a significant intervening factor. The sample includes 31 Italian distributors over the period 1998-2004; their quality performance is represented by continuity of supply, an aspect of quality that is both contractible and regulated. Results of the empirical analysis suggest that the transfer of shareholdings to private investors does not lead to quality degradation. The results also suggest that managerial dominance translates into a reduction in supply quality; this effect is likely to be particularly strong for public-sector utilities.

Keywords: privatization, managerial behavior, service quality

JEL Classification: L94, L98

Suggested Citation

Fumagalli, Elena and Garrone, Paola and Grilli, Luca, Service Quality in the Electricity Industry: The Role of Privatization and Managerial Behavior (September 16, 2007). Energy Policy, Vol. 35, No. 12, pp. 6212-6224, December 2007. Available at SSRN: https://ssrn.com/abstract=1610149

Elena Fumagalli (Contact Author)

Polytechnic University of Milan ( email )

Piazza Leonardo da Vinci
Milan, Milano 20100
Italy

Paola Garrone

Politecnico di Milano ( email )

piazza Leonardo da Vinci 32
Milano, 20133
Italy
+39-02-23992742 (Phone)

Luca Grilli

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering ( email )

Via Lambruschini 4C - building 26/A
Milano, 20156
Italy

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