TY - JOUR

T1 - Path dependence and independent utility regulation

T2 - the case of Danish energy and telecommunications regulation

AU - Ibsen, Christian Lyhne

AU - Skovgaard Poulsen, Lauge

PY - 2007

Y1 - 2007

N2 - The establishment of the Danish independent regulatory authorities for the energy and telecommunications sectors was based upon EU directives as part of their liberalisation process. Following the concepts of transaction costs and path dependency this article analyses differences in independence between the two authorities - the Danish Energy Regulatory Authority (Energitilsynet) and the National IT and Telecommunications Agency (IT- og Telestyrelsen) respectively. We find that the state's negligible interest in the energy sector until the 1970s formed the basis for strong energy companies capable of influencing regulation in their interest. This condition made DERA relatively dependent on commercial interests compared to NITA. In contrast, the state had an early interest in controlling and regulating telecommunications services, which meant strong control of the telecommunications companies and a regulation contingent upon political interests that has continued to this day. We therefore suggest that sector-specific institutional processes have caused differences between the regulatory institutions mediating the influence of the EU.

AB - The establishment of the Danish independent regulatory authorities for the energy and telecommunications sectors was based upon EU directives as part of their liberalisation process. Following the concepts of transaction costs and path dependency this article analyses differences in independence between the two authorities - the Danish Energy Regulatory Authority (Energitilsynet) and the National IT and Telecommunications Agency (IT- og Telestyrelsen) respectively. We find that the state's negligible interest in the energy sector until the 1970s formed the basis for strong energy companies capable of influencing regulation in their interest. This condition made DERA relatively dependent on commercial interests compared to NITA. In contrast, the state had an early interest in controlling and regulating telecommunications services, which meant strong control of the telecommunications companies and a regulation contingent upon political interests that has continued to this day. We therefore suggest that sector-specific institutional processes have caused differences between the regulatory institutions mediating the influence of the EU.

KW - Faculty of Social Sciences

KW - Regulering

KW - Stiafhængighed

KW - Uafhængige reguleringsmyndigheder

KW - Energi

KW - Telekommunikation

KW - Regulatory Politics

KW - Path dependence

KW - Independent Regulatory Authorities

KW - Energy

KW - Telecommunications

M3 - Journal article

VL - 55

SP - 41

EP - 63

JO - Scandinavian Economic History Review

JF - Scandinavian Economic History Review

SN - 0358-5522

IS - 1

ER -