Is Market-Oriented Reform Producing a 'Two-Track' Europe? Evidence from Electricity and Telecommunications

Annals of Public and Cooperative Economics, 82(4), 495-513, 2011

16 Pages Posted: 6 Sep 2012

See all articles by Judith Clifton

Judith Clifton

University of Cantabria

Daniel Díaz-Fuentes

Universidad de Cantabria; Universidad de Cantabria, Department of Economics

Marcos Fernández-Gutiérrez

University of Cantabria

Julio Revuelta

University of Cantabria - Department of Economics

Date Written: 2011

Abstract

The European Commission has formally recognised that adequate provision of basic household services, including energy, communications, water and transport, is key to ensuring equity, social cohesion and solidarity. Yet little research has been done on the impact of the reform of these services in this regard. This paper offers an innovative way to explore such questions by analysing and contrasting stated and revealed preferences on citizen satisfaction with and expenditure on two services, telecommunications and electricity, in two large countries, Spain and the United Kingdom. We find evidence that in telecommunications, but not in electricity, reform has led to a “two-track” Europe, where citizens who are elderly, not working or the less-educated behave differently in the market, with the result that they are less satisfied with these services than their younger, working, better-educated, counterparts.

Keywords: Public services, regulation, citizens, consumers, social cohesion

JEL Classification: D12, L94, L96, L98

Suggested Citation

Clifton, Judith and Diaz-Fuentes, Daniel and Diaz-Fuentes, Daniel and Fernández-Gutiérrez, Marcos and Revuelta, Julio, Is Market-Oriented Reform Producing a 'Two-Track' Europe? Evidence from Electricity and Telecommunications (2011). Annals of Public and Cooperative Economics, 82(4), 495-513, 2011, Available at SSRN: https://ssrn.com/abstract=2142079

Judith Clifton

University of Cantabria ( email )

Avda. Los Castros, s/n
Santander 39005
Spain

Daniel Diaz-Fuentes

Universidad de Cantabria ( email )

Av. Los Castros s/n
Santander 39005, Cantabria 39005
Spain
+34 942201624 (Phone)

HOME PAGE: http://personales.unican.es/diazd/

Universidad de Cantabria, Department of Economics ( email )

Av. Los Castros s/n
Santander 39005, Cantabria 39005
Spain
+34 942201624 (Phone)

HOME PAGE: http://personales.unican.es/diazd/

Marcos Fernández-Gutiérrez (Contact Author)

University of Cantabria ( email )

Avda. Los Castros, s/n
Santander 39005
Spain

Julio Revuelta

University of Cantabria - Department of Economics ( email )

Av. Los Castros s/n
Santander 39005, Cantabria 39005
Spain

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