The regulation of electricity: results from an event study

Antony Dnes and J. S. Seaton

Applied Economics, 1999, vol. 31, issue 5, 609-618

Abstract: In this paper, event-study methods are used to compare the stock-market returns for the RECs with general stock-market returns to test the hypothesis that the regulatory package shows symptoms of capture by special interest groups over the 1991-95 period. The results show that some capture by the RECs may have occurred as they have earned abnormal market returns. However, regulatory events are heterogeneous in nature and actions taken over prices by the Director General of Electricity Supply (DGES) in 1995 appear to have reduced abnormal returns. As part of the study, we examine the impact on shareholders' returns of the DGES's controversial announcement in March 1995 of plans to tighten price controls on the RECs. The regulatory package appears to work reasonably well on balance.

Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/000368499324057 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:31:y:1999:i:5:p:609-618

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/000368499324057

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().