Welfare Effects of Gas Industry Reforms in the European Union: An Empirical Analysis

52 Pages Posted: 16 Jul 2018

See all articles by Rinaldo Brau

Rinaldo Brau

Università di Cagliari - Department of Economics & Business; Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Raffaele Doronzo

Bank of Italy

Carlo V. Fiorio

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM)

Massimo Florio

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM)

Date Written: September 13, 2007

Abstract

The paper offers an exploratory empirical analysis of the impact on consumers’ welfare of the reforms of the gas industry in 15 member states of the European Union. After considering some features of the natural gas industry and of its reform in selected countries, we study the relationship between regulatory reform indicators (as summarized by the REGREF database by the OECD) and price dynamics by means of panel data techniques. We then present a simple exercise of welfare evaluation and to what extent price dynamics and the reforms have an impact on subjective consumers’ satisfaction, as reported by three waves of the Eurobarometro survey. We also compare REGREF indicators with the Market Opening Milestones database, prepared by Copenhagen Economics on behalf of the European Commission. We do not find evidence that privatization per se has an impact on productivity, prices or satisfaction, while vertical disintegration seems to be beneficial.

Keywords: Natural gas industry, privatization, regulatory reform

Suggested Citation

Brau, Rinaldo and Doronzo, Raffaele and Fiorio, Carlo V. and Florio, Massimo, Welfare Effects of Gas Industry Reforms in the European Union: An Empirical Analysis (September 13, 2007). Available at SSRN: https://ssrn.com/abstract=3202107 or http://dx.doi.org/10.2139/ssrn.3202107

Rinaldo Brau

Università di Cagliari - Department of Economics & Business ( email )

V. S. Ignazio 17
Cagliari 09123, CA 09123
Italy
+39 070 6753315 (Phone)
+39 178 2243016 (Fax)

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY

Raffaele Doronzo

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Carlo V. Fiorio

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM) ( email )

Via Conservatorio, 7
Milan, 20122
Italy

Massimo Florio (Contact Author)

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM) ( email )

Via Conservatorio 7
I-20122 Milano, 20122
Italy
+39 02 50321510 (Phone)
+39 02 50321505 (Fax)

HOME PAGE: http://www.demm.unimi.it/ecm/home

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