The government should reconsider the liberalization of the energy generation sector in the Philippines.
Share
The government should reconsider the liberalization of the energy generation sector in the Philippines.
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Answer:
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.
Explanation: