Effectiveness of regulation: An investigation of the turkish natural gas distribution market

Abstract

In this chapter, the effectiveness of regulation in the Turkish natural gas distribution sector is investigated by examining EMRA’s implementations and the performances of the companies. The analyses were taken into account mainly in the context of the effectiveness of regulation rather than in drawing conclusions with respect to economic paradigms, like market failure. The important regulations with regard to the Turkish natural gas distribution sector were analyzed within the scope of the differences between the various planned and recognized situations. Thus, it was understood that some of the regulations did not produce effective results. Particularly the comparison between private and state-owned companies concerning their performances and R&D expenditures revealed the alienation experienced from the expected benefits of liberalization. The regulations to encourage sector development and cost reduction through R&Ds have not been properly implemented. The obtained results are considered as partially regulatory failure.