ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Oct
19

Small Hydropower Plants: No Competition in a Competitive Marketplace

Economics suggests that competition in a market brings more welfare to a country. Anti-monopoly agencies exist to create policies that limit market dominance and achieve competition. There are, of course, cases when natural monopolies emerge (for example, railways – where no one would build a parallel line to an existing one) and the solution to prevent monopolies in such instances is to regulate the businesses or take them into state ownership. It is, however, difficult, but not impossible, to find an instance when a market is competitive, but where no ...
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Guest — Irakli
That’s why only allowing trade (by law) is not enough. Even though they are allowed to trade and market is competitive we do not s... Read More
Friday, 19 October 2012 11:11 PM
Guest — Eric
I don't think this is about competition or lack thereof. The puzzle is that small HPPs are free to sell directly to customers, cut... Read More
Friday, 19 October 2012 6:06 PM
Guest — Irakli
Yes, ESCO does something like risk pooling. But question is if ESCO is the only player which can do this. There might be other ins... Read More
Friday, 19 October 2012 11:11 PM
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Oct
17

Georgia – Net Electricity Importer Again?

Several years ago the (now former) Georgian government started successful reforms in the electricity sector and was eagerly looking forward to future projects. The improvements made were evident. The rehabilitation of hydroelectric power plants (HPPs) and other structural reforms led to a gradual increase of hydro power generation and to the decrease of electricity imports and thermo power generation. From 2006 this helped Georgia to become a net exporter. By 2010 Georgia exported almost seven times more electricity (1524.3 GWh) than it imported (222.1 G...
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Guest — Rati
I've undergone a starting phase of depression until I reached paragraph 4. thanks for good post and expecially for its end.
Wednesday, 17 October 2012 3:03 PM
Guest — Giorgi
Michael, there was not any announcement about such large rehabilitation in last couple years that could cause this. In the contra... Read More
Friday, 19 October 2012 2:02 PM
Guest — Michael
Maybe extensive construction had a (negative) impact on power generation. I suppose there are HPPs that have been rehabilitated, t... Read More
Wednesday, 17 October 2012 4:04 PM
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Oct
05

Competition in the Georgian Retail Gasoline Market

No, nothing about the election here. Instead something about the Georgian retail gasoline market, which according to some is not so competitive. Case in point is this article on an opposition (soon government) leaning news outlet that alleges price fixing in the Georgian retail gasoline market. The article is based on a recent study by Transparency Georgia. A study with some interesting data, but apparently it was all too much for a clueless (or partisan) journalist. But let’s discuss the study itself. Transparency Georgia finds that: The reta...
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Guest — Eric
Leaving the poor "journalist" alone, I had a very similar impression of a previously published Transparency International report o... Read More
Saturday, 06 October 2012 10:10 AM
Guest — Matsatso
In favor of TI survey,I agree with the fact that "price transmission mechanism" seems to be really asymmetric in Georgia. View is ... Read More
Saturday, 06 October 2012 12:12 PM
Guest — Michael
It seems to me though that think tanks in Georgia are already quite specialized, what means that there is little scrutiny and litt... Read More
Monday, 08 October 2012 11:11 PM
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Jul
04

Everything You Wanted to Know About Your Electricity Bill

In the last week's Khachapuri Index column in The Financial we took a break from agriculture and focused instead on the energy sector of Georgia. While the bulk of khachapuri cost is related to home grown agricultural products, to actually cook khachapuri one has to use energy. And though the share of energy in the total cost is very low, less than 6% (15 tetri, if using gas; 16 – if using electrical oven), it does not make the sector any less interesting to discuss. Let us begin by stating the obvious: ever since we started our Khachapuri Index survey i...
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Guest — Michael
Is there any data on the absolute cost of Transmission & Distribution, and Generation & Supply, compared to other countries? How d... Read More
Wednesday, 04 July 2012 6:06 PM
Guest — Irakli
Yes, the data on absolute costs is available for some countries (Mainly for EU countries from Eurostat) and in vast majority of co... Read More
Wednesday, 04 July 2012 8:08 PM
Guest — Vano
Nice post! Describes in an easy ways the long way of electrons coming to our houses. Looking to the chart, one question comes to ... Read More
Thursday, 05 July 2012 11:11 PM
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Feb
10

The World's Tallest Skyscraper

From Eurasianet: The Azerbaijani developer Avesta plans to stick the 1,110-meter-high (about 3,642- feet-high) building on a chain of artificial islands off Azerbaijan's Caspian Sea shore. Completion date: by 2019. The tower -- named, not surprisingly, "Tower of Azerbaijan" -- is expected to house hotels and business centers. While it is unclear whether this project will ever be realized, it certainly shows that Azerbaijan has huge ambitions. Comparisons to Dubai come to mind, as a city with attention-grabbing architectural projects. More importantly, Du...
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Guest — Eric
Azerbaijan's production of carbon fuels is very close to reaching its peak (if it hasn't already reached the peak). The recent dis... Read More
Saturday, 11 February 2012 12:12 PM
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Dec
24

The Georgian Christmas tree

What would Christmas be without a Christmas tree? In Georgia, in Europe or anywhere else in the world. But little known to most Europeans, most trees sold in Europe can trace their origin to Georgia. It is the seeds of the Nordmann fir which are exported from Georgia to Christmas tree farms in Denmark, Germany and other countries. Why? The Nordmann firs from the mountain regions of Georgia are some of the finest in the world – what Bordeaux is for the wine world, Ambrolauri in Racha is for Christmas tree producers. Already in the 1960s Danish and Ge...
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Guest — stardust
Merry Christmas!May we all find peace and joy, kindness and good cheer this holiday season!
Sunday, 25 December 2011 1:01 AM
Guest — Eric
Merry Xmas, Michael! It took me 20min to read your post and type this short message using my brand new Kindle. I found it under a ... Read More
Sunday, 25 December 2011 3:03 PM
Guest — Giorgi Balakhashvili
Hello everyoneMy uncle is exporting the seeds of Abies Nordmanniana for 10-15 years. It is the only business at the moment that Ge... Read More
Thursday, 29 December 2011 8:08 PM
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