Welfare Effects, Government Policies, and Deadweight Loss

Naidu, Suwastika and Naicker, Yashnita (2020) Welfare Effects, Government Policies, and Deadweight Loss. In: Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer Nature, Switzerland. ISBN 978-3-319-31816-5

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Abstract

The main aim of this paper is to estimate and examine the deadweight loss generated by state owned monopolies in Fiji and Samoa. This paper also seeks to examine the impact of government policies on the deadweight loss generated by monopolies. This paper found that the deadweight loss generated by the Fiji Electricity Authority increased from -1.28 in 2011 to 0.27 in 2014. In the case of Samoa Electric Power Corporation, the deadweight loss also increased from -1.31 in 2011 to 0.40 in 2014. By charging taxes, the government of Fiji has reduced the deadweight loss by 0.99% in 2011, 20.58% in 2013 and 12.67% in 2014. By providing fuel levy subsidy to the Samoa Electric Power Corporation, the government of Samoa has reduced the deadweight loss by 123% in 2011, 147.09% in 2012, 106.03% in 2013 and 88.45% in 2014. This study has implications for policy makers and practitioners. The government should encourage private sector involvement in the provision of electricity in Fiji and Samoa.

Item Type:	Book Chapter
Additional Information:	DOI: https://doi.org/10.1007/978-3-319-31816-5
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance H Social Sciences > HJ Public Finance
Divisions:	Faculty of Business and Economics (FBE) > School of Management and Public Administration
Depositing User:	Suwastika Naidu
Date Deposited:	17 May 2020 23:49
Last Modified:	17 May 2020 23:49
URI:	https://repository.usp.ac.fj/id/eprint/12133

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