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The role of Portuguese electricity generation regimes and industrial production

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  • Marques, António Cardoso
  • Fuinhas, José Alberto

Abstract

This paper examines how renewables (special regime) simultaneously interact with conventional sources (ordinary regime), within the Portuguese electricity generation system. There is also an appraisal of the relationship between these two regimes and economic activity, using the industrial production index. First difference VAR modelling was applied for monthly data for the time span of 2007:M1 to 2012:M10. The appropriateness of the VAR is proved. The relationship between variables develops within a structure of endogeneity, i.e., they generate feedback and may be both explained and explaining variables, simultaneously. The outcomes show a strong complementarity between the ordinary and special regimes. Economic activity causes electricity consumption but only the special regime causes economic activity. Moreover, the non-renewable component of the special regime does not cause a need for backup from either the ordinary regime or imports, contributing to a reduction in energy dependency.

Suggested Citation

  • Marques, António Cardoso & Fuinhas, José Alberto, 2015. "The role of Portuguese electricity generation regimes and industrial production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 321-330.
    • Handle: RePEc:eee:rensus:v:43:y:2015:i:c:p:321-330
    DOI: 10.1016/j.rser.2014.11.053
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    6. Cunha, Paulo & Neves, Sónia Almeida & Marques, António Cardoso & Serrasqueiro, Zélia, 2020. "Adoption of energy efficiency measures in the buildings of micro-, small- and medium-sized Portuguese enterprises11The financial support of the NECE - Research Unit in Business Science and Economics, ," Energy Policy, Elsevier, vol. 146(C).
    7. Imisi Aiyetan & Adeleke Aremo & Philip Olomola, 2020. "Assessing the Impact of Electricity Production on Industrial and Agricultural Output Growth in Nigeria," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 13(3), pages 83-97, December.
    8. Sharif, Arshian & Jammazi, Rania & Raza, Syed Ali & Shahzad, Syed Jawad Hussain, 2017. "Electricity and growth nexus dynamics in Singapore : Fresh insights based on wavelet approach," Energy Policy, Elsevier, vol. 110(C), pages 686-692.
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