Energy R&D in private and state-owned utilities: an analysis of the major world electric companies

Alessandro Sterlacchini

MPRA Paper from University Library of Munich, Germany

Abstract: The last two decades have witnessed a staggering decline of R&D investment in the fields of energy and electricity. This paper contends that this widespread phenomenon is mainly ascribable to the processes of liberalisation and privatisation of electricity markets which have induced electric utilities to dramatically reduce R&D expenditures. However, a closer inspection to recent data concerned with ten major electric companies of the world shows that not all of them behaved in the same way. The drop of research expenditures was particularly strong among the private or newly-privatised companies, while those that remained under public control did not reduce R&D efforts. Moreover, the choice of maintaining an adequate level of R&D was not at odds with the goal of increasing company profits. According to these findings and to the widely recognised need of a surge of energy R&D, radical policy measures seem necessary. Along with an R&D obligation for private electric utilities, also an extension of public ownership or the introduction of public-private partnerships should be seriously taken into account.

Keywords: Energy R&D; Electric utilities; Public and private enterprises (search for similar items in EconPapers)
JEL-codes: L33 L94 O30 (search for similar items in EconPapers)
Date: 2010-02-25
New Economics Papers: this item is included in nep-ene and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Energy R&D in private and state-owned utilities: An analysis of the major world electric companies (2012)
Working Paper: Energy R&D in private and state-owned utilities: an analysis of the major world electric companies (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:20972

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