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Competition and Innovation in Retail Electricity Markets: Evidence from Italy
Author(s) -
Stagnaro Carlo
Publication year - 2017
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/ecaf.12216
Subject(s) - liberalization , electricity retailing , competition (biology) , electricity , nexus (standard) , electricity market , industrial organization , business , market economy , economics , empirical evidence , european union , demand side , commerce , international economics , microeconomics , engineering , ecology , electrical engineering , biology , embedded system , philosophy , epistemology
Italy's 2015 Annual Competition Law, if finally approved, provides for phasing out retail electricity price regulation, as well as the implementation of full retail liberalisation, from 1 July 2018. This is a significant reform, not just because it is consistent with the broader market design for electricity. Indeed, retail liberalisation is a qualifying element of the full integration of the European Union's electricity market. The full opening of retail markets provides a great opportunity for innovation, both on the demand side and on the supply side. This article investigates the theoretical background, and presents some empirical evidence, on the competition–innovation nexus in retail electricity markets.