Publication: The Real Possibility of Competitive Generation Markets in Hydro Systems : The Case of Brazil

Thumbnail Image
Files in English
English PDF (368.46 KB)
103 downloads

English Text (18.67 KB)
27 downloads
Date
1997-02
ISSN
Published
1997-02
Author(s)
Estache, Antonio
Rodriguez-Pardina, Martin
Abstract
Brazil's electricity sector is made up of more than sixty-five, mostly vertically integrated, federally- and state-owned monopolies. The most pressing problems in the sector are excessive operational costs and large investment needs. Both of these problems can be addressed through more competition and more private participation. There is a consensus among federal and state policymakers and key operators that the sector's potentially competitive segments should be separated from its natural monopoly segments and awarded as concessions or sold to private investors. However, there are important technical challenges, one of which relates to competitive generation. First, to ensure open entry and the long-term viability of competition in the electricity sector, the government must figure out how to competitively allocate water rights. Second, to provide incentives for investing in generating capacity, a pricing system must be put in place that will ensure recovery of the high sunk capital costs characteristic of hydro systems. This Note describes one consistent approach, using incentive-based organization and regulation, for overcoming the technical challenges to effective competition in the generation market.
Link to Data Set
Citation
Estache, Antonio; Rodriguez-Pardina, Martin. 1997. The Real Possibility of Competitive Generation Markets in Hydro Systems : The Case of Brazil. Viewpoint: Public Policy for the Private Sector; Note No. 106. © World Bank, Washington, DC. http://hdl.handle.net/10986/11595 License: CC BY 3.0 IGO.
Report Series
Report Series
Other publications in this report series
  • Publication
    Competition and Poverty
    (World Bank, Washington, DC, 2016-04) Begazo, Tania ; Nyman, Sara
    A literature review shows competition policy reforms can deliver benefits for the poorest households and improve income distribution. A lack of competition in food markets hurts the poorest households the most. Competition in input markets and between buyers helps farmers and small businesses. And more competitive markets bolster job growth over the longer term. More research is needed, however, to better understand the impact of competition reforms and antitrust enforcement on poverty and shared prosperity.
  • Publication
    Small Business Tax Regimes
    (World Bank, Washington, DC, 2016-02) Coolidge, Jacqueline ; Yilmaz, Fatih
    Simplified tax regimes for micro and small enterprises in developing countries are intended to facilitate voluntary tax compliance. However, survey evidence suggests that small business taxation based on simplified bookkeeping or turnover is sometimes perceived as too complex for microenterprises in countries with high illiteracy levels. Very simple fixed tax regimes not requiring any books or records tend to be overly popular but prone to abuse. System reforms will require more precise tailoring of the simplified regimes to their target beneficiaries, coupled with strong compliance management to detect and deter abuse. The overall objective of simplified taxation for micro and small enterprises (MSEs) in developing countries is generally to facilitate voluntary tax compliance and remove obstacles in moving toward business formalization and growth.
  • Publication
    Investment Climate in Africa
    (World Bank, Washington, DC, 2015-07-01) Bridgman, David ; Adamali, Aref
    The World Bank Group has been working on investment climate reform in Sub-Saharan Africa for nearly a decade, a period characterized by dramatic economic growth on the continent. Establishing links between such reform interventions and economic growth, however, is a complex problem. Although this note finds some connection between investment climate reform and economic growth, establishing more concrete evidence of causation will require greater focus at the country level, as well as on small and medium enterprises. This is where investment climate interventions generate change.
  • Publication
    Export Competitiveness: Why Domestic Market Competition Matters
    (World Bank, Washington, DC, 2015-06) Goodwin, Tanja ; Pierola, Martha Denisse
    This review of the empirical literature shows that industries with more intense domestic competition will export more. Competition law enforcement can be traced to export performance and is complementary to trade reforms. Pro-competition market regulation that reduces restrictions and promotes competition, where it is viable, is an important determinant for trade. The elimination of barriers to entry and rivalry, and a level playing field in upstream sectors contributes to export competitiveness in downstream manufacturing sectors. In some sectors, effective competition policy can directly lower trade costs.
  • Publication
    Primary Care for the Poor: The Potential of Micro-Health Markets to Improve Care
    ( 2015-01) Coarasa, Jorge ; Das, Jishnu
    Much of the primary curative care provided to the poor by the private sector occurs not at large hospitals but at small, single-person clinics. While such micro-health providers increase access, questions persist about quality. Some have argued that the micro-health sector needs to be better regulated. This note cites recent studies in arguing that the micro-health sector needs to be better understood. A more evidence based approach may enable the World Bank Group to better target investments and interventions and help these providers fulfill an important role serving the poor. The following recommendations are made at the conclusion of this paper: (1) Effort, rather than hardware or training, may count the most. (2) Scaling up interventions to improve quality requires understanding and addressing market failures. (3) Changing the way impacts are measured will lead to smarter investments.
Journal
Journal Volume
Journal Issue
Collections
Associated URLs
Associated content
Citations