engleski

Quality of Governance and Electricity Reforms: The Case of Energy Community in Southeast Europe

Eight Southeast European countries in 2005 signed the Treaty on establishing the Energy Community and took the obligations to adopt the EU Acquis on energy and to conduct all the necessary reforms. This process strongly depends on the SEECs’ institutional capacity, especially the quality of national governance, and, at the same time, the appropriate level of institutional resources is crucial for the SEE countries in order to benefit from the reforms in electricity sector. The paper identifies the key reform steps in SEECs, how much of these reforms have taken place till today and to relate the reform progress with the quality of governance. Our empirical research confirms the mediation hypothesis that regulatory quality mediates the effects of government effectiveness on the success in implementation of reforms in electricity sector of transition countries. The results of regression analysis show that the regulatory quality is a crucial condition for the success of electricity reforms in transition countries. Having in mind the fact that these countries have relatively poor institutional performance, the dilemma is weather the well designed reform model can be successfully implemented in countries where certain institutional resources are still missing.

governance; regulatory quality; electricity reforms; Southeast Europe

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