ANNOUNCEMENTS
Introduction of regulatory reform in the electricity sector in India was aimed at bringing about desired changes in the sector as articulated in the laws and policies. Studies on the impact of reforms on electricity sector performance have so far not applied a sustainable development perspective, and the general approach has been to focus on sector outcomes in the economic dimensions. This follows from the standard model of regulation as articulated in the theoretical literature with its focus on correcting for market failures and promoting competition in the sector. It is now accepted by scholars that such a model of regulation may not be appropriate for developing country context as in the case of India. In the revised model of regulation, regulators are expected to be aware of cross-sector linkages and bear the responsibility of addressing the economic, environmental and social concerns associated with the development of a critical sector such as electricity. The present study is an attempt to develop an indicators based integrated assessment framework for the electricity sector outcomes in 12 Indian states over a decadal study period from 2001 – 2010. It is expected that such an assessment framework will help in evaluating the electricity sector’s outcomes from a sustainable development perspective, and accordingly will inform the regulators whether the development of the sector is contributing to welfare enhancing impacts on all three dimensions of sustainable development. Based on the composite index measure constructed from a set of 11 indicators linked to the outcomes of state level electricity sectors, the study draws the conclusion that overall for the 12 states under study, and for the time period 2001 – 2010, there has been a progressive movement towards sustainable development as far as the sector’s contribution in this regard is concerned. However, at the state level there is significant diversity in terms of the electricity sector’s outcomes, especially when considered for the individual dimensions. On the regulation front, the study finds that regulatory content in all 12 states has progressively deepened over the study period. The central finding of this thesis emerges from an econometric analysis in which it is clearly established that regulation has a positive and significant causal influence on state level electricity sector outcomes. Such a finding adds strength to the theoretical proposition that regulation can and should aim for sustainable development outcomes from a sector’s performance. The study further looks into the implementation aspects of a key set of regulatory content variables to identify specific processes and mechanisms that may be enabling regulators to impact decisively on sector outcomes in any or all of the three dimensions linked to sustainable development. Interestingly what emerges is that there is an emphasis in the implementation of regulations towards outcomes in the economic and environmental dimensions. The findings from the present study have a clear policy relevance for the regulatory governance of the electricity sector in India.
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