Abstract
The supply of reliable and affordable electricity has become imperative in most production and household activities in modern society. No country has progressed after subsistence extent without guaranteeing the least electricity level. Many develo** and emerging countries have started implementing reform initiatives around the electricity market since the 1990s. The major developments in reforming countries are structural changes and privatisation of electricity and energy utilities. Bangladesh is also no exception to this trend. Realising the significance of the electricity sector as the lifeblood of industrial and economic development, the country also took multiple strides towards develo** the sector by restructuring key power companies, creating independent regulatory bodies, and promoting private sector firms to enter the electricity market. However, to our knowledge, no literature focuses on the impact of the electricity market reform (EMR) in Bangladesh through the lens of privatisation, competition, and regulation. Addressing the research gap and discussing the reform initiatives critically, this chapter aims to empirically analyse the effects of the EMR on the energy sector development and macroeconomic stability of Bangladesh with the help of a time-series data set covering 1980–2019. We use standard and robust unit root and cointegration tests for empirical analysis. For the long-run estimation purpose, we use the dynamic OLS method. The results of our study can help policymakers adopt effective policies for sustainable development in Bangladesh.
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Notes
- 1.
‘Power’ and ‘electricity’ are used interchangeably in this chapter.
- 2.
For more details, see http://oldweb.lged.gov.bd/UploadedDocument/UnitPublication/1/1049/vision%202021-2041.pdf.
- 3.
Only 3% of the population had access to electricity in 1971.
- 4.
- 5.
- 6.
Bangladesh becomes the first South Asian country to introduce benchmark pricing system.
- 7.
Amin et al. (2021c) report that private investment is better than government investment in increasing energy consumption in South Asia. = .
- 8.
For more details about investment potentials in the Bangladesh power sector (as of 13th June 2019), see http://www.powercell.gov.bd/site/page/8bf3f2bf-cdc8-4235-b2ca-1e8e39e3e7df/-.
- 9.
- 10.
Article 16 states: ‘The State shall adopt effective measures to bring about a radical transformation in the rural areas through the promotion of an agricultural revolution, the provision of rural electrification, the development of cottage and other industries, and the improvement of education, communications and public health, in those areas, so as progressively to remove the disparity in the standards of living between the urban and the rural areas’. See http://bdlaws.minlaw.gov.bd/act-367/part-199.html.
- 11.
For more details, see https://www.bpdb.gov.bd/bpdb_new/d3pbs_uploads/files/11%20March%2019/1.%20PSEPGPB.pdf.
- 12.
- 13.
- 14.
For more details, see: https://www.adb.org/sites/default/files/publication/692451/adbi-wp1238.pdf.
- 15.
- 16.
For more details, see http://policy.thinkbluedata.com/sites/default/files/REP_English.pdf.
- 17.
For more details, see https://policy.asiapacificenergy.org/sites/default/files/Roadmap_power_energy_2010.pdf.
- 18.
This power sector road map was further revised in 2011.
- 19.
For more details, see https://policy.asiapacificenergy.org/sites/default/files/EEC_Master_Plan_SREDA_2.pdf.
- 20.
- 21.
More details can be found at http://oldweb.lged.gov.bd/UploadedDocument/UnitPublication/1/1049/vision%202021-2041.pdf.
- 22.
- 23.
For more details, please see https://www.bpdb.gov.bd/bpdb_new/index.php/site/page/13e9-2cc0-ce41-9c09-088d-94d5-f546-04a6-b4fa-1d18.
- 24.
This can be simply referred to as unregistered consumption of electricity.
- 25.
- 26.
For details, please see https://openjicareport.jica.go.jp/pdf/12231247.pdf.
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Amin, S., Nepal, R., Phoumin, H. (2022). An Econometric Assessment of the Effects of Electricity Market Reform on Bangladesh Economy. In: Phoumin, H., Nepal, R., Kimura, F., Uddin, G.S., Taghizadeh-Hesary, F. (eds) Revisiting Electricity Market Reforms. Springer, Singapore. https://doi.org/10.1007/978-981-19-4266-2_7
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