The Importance of Effective Economic Regulation and Coordinated Institutions for Inclusive Growth: Lessons from South Africa's Renewable Energy Programmes in the Electricity Supply Industry

31 Pages Posted: 14 Nov 2016

See all articles by Gaylor Montmasson-Clair

Gaylor Montmasson-Clair

Trade & Industrial Policy Strategies (TIPS)

Reena Das Nair

Centre for Competition, Regulation & Economic Development (CCRED)

Date Written: November 14, 2016

Abstract

Economic regulation, including competition policy, is not an end in itself but a means to an end, and must ultimately have a positive impact on the economy as a whole. However, this positive impact needs to be broad-based or inclusive, particularly in the context of South Africa given its legacy of non-inclusive growth and persistent inequality. An area where increased participation is important in achieving more inclusive growth in a developing country context is in the procurement of large-scale infrastructure. The South African experience with procuring large-scale renewable energy-based electricity generation capacity carries interesting lessons in this respect.

The paper reviews the development of South Africa’s large-scale renewable energy sector from an economic regulation and inclusive growth lens. The regulatory framework governing the sector is examined, looking at both the policy and institutional environment, and their role in contributing to inclusive growth objectives. As such, the paper investigates the role that economic regulation can play in stimulating inclusive growth, through the promotion of both competitive and socio-economic outcomes. The paper also looks at the importance of factoring vested interests in order to maximise inclusive growth outcomes through economic regulation.

Keywords: economic regulation, competition policy, inclusive growth, infrastructure development, socio-economic development, renewable energy, South Africa

JEL Classification: L1, L2, L5, O1, Q4

Suggested Citation

Montmasson-Clair, Gaylor and Das Nair, Reena, The Importance of Effective Economic Regulation and Coordinated Institutions for Inclusive Growth: Lessons from South Africa's Renewable Energy Programmes in the Electricity Supply Industry (November 14, 2016). Available at SSRN: https://ssrn.com/abstract=2869060 or http://dx.doi.org/10.2139/ssrn.2869060

Gaylor Montmasson-Clair (Contact Author)

Trade & Industrial Policy Strategies (TIPS) ( email )

227 Lange Street
Pretoria, Gauteng 0180
South Africa
+27 12 433 93 40 (Phone)

HOME PAGE: http://www.tips.org.za

Reena Das Nair

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

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