Naturally monopolistic network industries are subject to economic regulation to achieve an optimal use of infrastructure and avoid the abuse of monopolistic power. In theory, such intervention leads to a higher allocative and productive efficiency in the industry. Relatively little is known about the results the economic regulation gives in practice and whether it achieves the objectives set. Literature states that due to the context-specific nature of regulatory framework, ex post analysis and practical experiments are necessary to be performed to study the impact of economic regulation on the performance of industries. In this paper, analysis of the impact of economic regulation on the oil shale value chain in Estonia is performed and the results are provided. Based on relevant policy documents, regulatory objectives and targets are identified and indicators compiled to monitor the results. The discussion is presented and recommendations for further research are given.
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