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WP 044: Welcare Impacts of Electricity Generation Sector Reform in the Philippines

This paper reports an empirical investigation into the welfare impacts of introduction of private sector participation into the Philippine electricity generation sector, through liberalization of the market for independent power producers (IPPs) during the power crisis of 1990-1993. This study uses a social cost and benefit analysis. The main benefits came from IPPs, which contributed to resolving the crisis and promoted economic and social development. Consumers and investors are net gainers, while the government lost and an air pollution cost was incurred. The paper concludes that reform with private sector participation increased social welfare.

Asian Development Bank
Authors Keywords
ADB; electricity and power; private sector participation; electric power reform; independent power producers (IPPs);
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Published in 2003 and available in the ADB Website or Downloaded 13,427 times since November 25, 2011
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