Driving Forces of the Brazilian Electricity Industry Reform
This paper addresses the main driving forces of the Brazilian Electricity Industry Reform. The paper shows that although we can identify important motivations to increase the industry's efficiency, more general macroeconomic motivations are playing an essential role in the industry's reform process. The paper argues that the recent macro-economic reforms in Brazil, aiming at the stabilisation of the economy, represent the main driving force for introduction of market oriented reforms and the privatisation of the electricity industry. Given this scope, the government has emphasised the privatisation process to the detriment of a new regulatory framework capable to guarantee an efficient allocation of resources in the industry. The article points and analyses the main unsolved questions for the creation for the new market oriented regulatory framework.
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