Provision of Public Services and Welfare of the Poor: Learning from an Incomplete Electricity Privatization Process in Rural Peru

Lorena Alcázar, Eduardo Nakasone () and Maximo Torero

No 3351, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: The incomplete privatization of the electric sector in Peru provides a unique scenario for evaluating the impact of public versus private provision. The results in this paper suggest that management of electricity firms by the private sector leads to a significant improvement in the quality of the provision of electricity. These improvements in quality and supply of electricity provision yield some efficiency gains in terms of the time allocation of the working labor force that can be directly linked to the use of electricity. Rural households under private provision of electricity had more opportunities to work in non-farm activities, and as a result, the share of time in non-farm activities increased, indicating both a substitution effect and a potential price effect through higher non-farm wages.

Keywords: Privatization; electric utilities; Latin American Research Network; Peru; electricity sector; public utilities (search for similar items in EconPapers)
Date: 2007-08
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Working Paper: Provision of Public Services and Welfare of the Poor: Learning from an Incomplete Electricity Privatization Process in Rural Peru (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:3351

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