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Desert power 2050: Regional and sectoral impacts of renewable electricity production in Europe, the Middle East and North Africa

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  • Calzadilla, Alvaro
  • Wiebelt, Manfred
  • Blohmke, Julian
  • Klepper, Gernot

Abstract

'Desert Power 2050' is probably the world's most ambitious strategy report towards the decarbonization of the power sector in Europe, the Middle East and North Africa (EUMENA). The report inspired by the Desertec vision aims at providing clean energy from MENA's desert regions to the entire MENA region as well as exporting electricity to Europe. The report shows that an integrated EUMENA power system based on more than 90 percent renewables is technically feasible and economically viable. We use a combination of a global general equilibrium model (DART) and a multiplier analysis to evaluate the economic effects behind 'Desert Power 2050' from a broader perspective, including not only the energy activities but also the repercussions in other sectors of the economies. The results show that the extent of the costs and benefits for both regions depend on the type of strategy adopted to finance the build-up of the power plants and the expected development of the levelised cost of electricity for the different technologies. Furthermore, the viability of a transition towards renewable energy as proposed by 'Desert Power 2050' depends to a great extent on the international climate policy.

Suggested Citation

  • Calzadilla, Alvaro & Wiebelt, Manfred & Blohmke, Julian & Klepper, Gernot, 2014. "Desert power 2050: Regional and sectoral impacts of renewable electricity production in Europe, the Middle East and North Africa," Kiel Working Papers 1891, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1891
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    References listed on IDEAS

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    1. Frondel, Manuel & Schmidt, Christoph M. & Vance, Colin, 2012. "Germany's Solar Cell Promotion: An Unfolding Disaster," Ruhr Economic Papers 353, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Philip Ulrich & Martin Distelkamp & Ulrike Lehr, 2012. "Employment Effects of Renewable Energy Expansion on a Regional Level—First Results of a Model-Based Approach for Germany," Sustainability, MDPI, vol. 4(2), pages 1-17, February.
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    Cited by:

    1. Perrihan Al-Riffai & Julian Blohmke & Clemens Breisinger & Manfred Wiebelt, 2015. "Harnessing the Sun and Wind for Economic Development? An Economy-Wide Assessment for Egypt," Sustainability, MDPI, vol. 7(6), pages 1-27, June.
    2. Almaktar, Mohamed & Shaaban, Mohamed, 2021. "Prospects of renewable energy as a non-rivalry energy alternative in Libya," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).

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    More about this item

    Keywords

    Computable General Equilibrium; Multiplier Analysis; Renewable Energy; Climate Policy; Europe-North Africa-the Middle East;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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