Abstract
This article assesses the impact of independent regulation on electricity supply, using data from 40 Sub-Saharan African countries over the period 2000 to 2021. Based on the propensity score matching method, we estimate the average effect of independent regulation. The results show that independent regulation positively impacts electricity generation, access to electricity, and service demand coverage. However, we find that independent regulatory authorities have no significant effect on electricity losses. A heterogeneity analysis by regional sub-blocks highlights that independent regulation enhances the allocative efficiency of electricity services in rural areas, particularly in countries experiencing social instability and insecurity. Conversely, independent regulatory authorities do not significantly affect the productive efficiency of electricity operators. These findings support the development of regulatory frameworks through the establishment of independent regulatory bodies, rural electrification initiatives, and competition authorities.
