The Impact of Competition Policy Enforcement on the Functioning of EU Energy Markets

Florian Szücs, Tomaso Duso, Jo Seldeslachts

Publikation: Wissenschaftliche FachzeitschriftOriginalbeitrag in FachzeitschriftBegutachtung


We investigate the impact of competition policy enforcement on the functioning
of European energy markets while accounting for sectoral regulation. For this purpose, we compile a novel dataset on the European Commission’s (EC) and EU
member states’ competition policy decisions in energy markets and combine it
with firm- and sector-level data. We find that EC merger policy has a positive and
robust impact on (i) the level of competition, (ii) investment and (iii) productivity.
This impact, however, only shows up in low-regulated sectors. Other competition
policy tools—EC state aid control and anti-trust, as well as all member state policy
variables—do not have a uniform effect on energy markets. Our findings are consistent with the idea that the EC’s merger policy actions have been used to overcome
obstacles to a well-functioning EU energy sector and may have contributed
to the overall development of gas and electricity markets in Europe.
Seiten (von - bis)97 - 120
FachzeitschriftEnergy Journal
PublikationsstatusVeröffentlicht - 2019