Title: The impact of privatisation on regulated energy markets: a Great Britain's case study in industrial ecology

Authors: Dumitru-Alexandru Bodislav

Addresses: Faculty of Theoretical and Applied Economics, Economics and Economic Policies Department, Bucharest University of Economic Studies, Calea Dorobanti, 15-17, district 1, Bucharest, 010552, Romania

Abstract: From the birth of the Marshall plan, it was observed that maximising the profit develops a barrier in growing social welfare, because it includes decreasing costs by redistributing capital that could lead to lowering the given wage (therefore decreasing welfare through income narrowing) and increasing unemployment by the replacement of human capital with higher productivity technology. Public intervention makes it possible for an efficient resource allocation that is not possible on the market, and by accepting losses. This research paper underlines the idea of market efficiency and segmentation between public and private entities with the help of a fine-tuned regulatory system that is perfectly moulded on the energy sector. The authors try to offer a business perspective by using a case study on the privatisation process developed in the 1980s in Great Britain and this way we could forecast what is next for Romania and its continuous privatisation process of state-owned energy companies.

Keywords: privatisation; market regulation; market efficiency; externality; energy sector; sustainable development; energy technology; R&D; research and development; equity; holistic analysis; power grid; UK; United Kingdom; regulated energy markets; case study; industrial ecology; Romania; state-owned enterprises; sustainability.

DOI: 10.1504/PIE.2015.069837

Progress in Industrial Ecology, An International Journal, 2015 Vol.9 No.1, pp.13 - 18

Published online: 13 Jun 2015 *

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