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Effects of Increased Renewable Energy Consumption on Electricity Prices: Evidence for Six South American Countries

Author

Listed:
  • Ronny Correa-Quezada

    (Department of Economics, Universidad Técnica Particular de Loja (UTPL), Loja 1101608, Ecuador)

  • María del Cisne Tituaña-Castillo

    (Department of Economics, Universidad Técnica Particular de Loja (UTPL), Loja 1101608, Ecuador)

  • María de la Cruz del Río-Rama

    (Business Management and Marketing Department, Faculty of Business Sciences and Tourism, University of Vigo, 32004 Ourense, Spain)

  • José Álvarez-García

    (Departamento de Economía Financiera y Contabilidad, Instituto Universitario de Investigación para el Desarrollo Territorial Sostenible (INTERRA), Facultad de Empresa Finanzas y Turismo, Universidad de Extremadura, Avd. de la Universidad, nº 47, 10071 Caceres, Spain)

Abstract

This research examines the relationship between renewable energy consumption and electricity prices in six South American countries (Argentina, Bolivia, Colombia, Chile, Ecuador and Peru). The methodology used is a panel econometric model with annual data for the period 1990–2015. The results show that the consumption of renewable energies influences the price of electricity paid by households, although its influence is very moderate. On the other hand, it was observed that the consumption of renewable energies has no relationship with the energy prices of the industrial sector and the commercial and services sector. In the countries analyzed, an increase in GDP causes an increase in the price of energy in the industrial sector. With more CO 2 emissions and a rise in the international price of oil, the annual average price of the industrial sector decreases.

Suggested Citation

  • Ronny Correa-Quezada & María del Cisne Tituaña-Castillo & María de la Cruz del Río-Rama & José Álvarez-García, 2022. "Effects of Increased Renewable Energy Consumption on Electricity Prices: Evidence for Six South American Countries," Energies, MDPI, vol. 15(2), pages 1-19, January.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:2:p:620-:d:726057
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    References listed on IDEAS

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    1. Ozturk, Ilhan & Aslan, Alper & Kalyoncu, Huseyin, 2010. "Energy consumption and economic growth relationship: Evidence from panel data for low and middle income countries," Energy Policy, Elsevier, vol. 38(8), pages 4422-4428, August.
    2. Stern, David I., 1993. "Energy and economic growth in the USA : A multivariate approach," Energy Economics, Elsevier, vol. 15(2), pages 137-150, April.
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    Cited by:

    1. Wang, Chen & Xia, Mengli & Wang, Piao & Xu, Junjie, 2022. "Renewable energy output, energy efficiency and cleaner energy: Evidence from non-parametric approach for emerging seven economies," Renewable Energy, Elsevier, vol. 198(C), pages 91-99.
    2. Ana Rita Silva & Ana Estanqueiro, 2022. "From Wind to Hybrid: A Contribution to the Optimal Design of Utility-Scale Hybrid Power Plants," Energies, MDPI, vol. 15(7), pages 1-19, April.

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