SOCIALISM FOR RED STATES IN THE ELECTRIC UTILITY INDUSTRY

Richard Schmalensee

Journal of Competition Law and Economics, 2016, vol. 12, issue 3, 477-494

Abstract: The Tennessee Valley Authority (TVA) and the other federal electric utilities were created under Democratic administrations, and their service territories were initially bluer (that is, more Democratic-leaning) than average. These subsidized enterprises sell cheap power preferentially to non-investor-owned distributors, so such utilities are more prominent where the federal utilities are important sellers. The political map of the United States has changed dramatically since the federal utilities were created. The federal utilities and non-investor-owned distributors are now more important on average in red (that is, Republican-leaning) states than in blue ones. Interest has trumped ideology: Republican policy-makers strongly opposed to socialism in principle seem happy with the important role of government enterprises in the U.S. electric utility industry.

JEL-codes: H42 L32 L94 N72 Q48 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:oup:jcomle:v:12:y:2016:i:3:p:477-494.

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Journal of Competition Law and Economics is currently edited by Nicholas Economides, Amelia Fletcher, Michal Gal, Damien Geradin, Ioannis Lianos and Tommaso Valletti

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