Core indicators for determinants and performance of the electricity sector in developing countries

Since the early 1990s, substantial resources and efforts have been spent on implementing market-oriented electricity reforms in developing countries. While there are important sectoral, economic, and social dimensions involved in electricity reform, empirical analysis and evaluation of reforms have been of limited use for testing the economic rationale of reforms and policy advice. This may partly be attributed to a lack of generally accepted and measured indicators for monitoring the progress, impacts, and performance of reforms. In this paper the authors propose a set of indicators as a first step toward filling this gap and developing a coherent framework for studying electricity reform in developing countries that covers resource and institutional endowments, key reform steps, market structure, performance, and various impacts.