The Economic Effects of an Accelerated Electrification and Decarbonization Process in Latin America

Raúl Gutiérrez - Meave, Héctor Núñez and Juan Rosellón

No 2252, Research Department working papers from CAF Development Bank Of Latinamerica

Abstract: This research analyzes the potential economic effects of accelerated electrification and decarbonization in selected Latin American countries. Using an economic equilibrium model, four scenarios were evaluated: 1) a Business-as-Usual (BAU) scenario, 2) a BAU scenario with increased electricity interconnections, 3) a green scenario with an emphasis on higher renewable energy growth rates, and 4) a green scenario integrating both higher energy growth rates and interconnection improvements. We aim to assess the impact of these strategies on significant economic indicators by comparing the optimal solutions of each scenario, and determine the difference in gains. Our approach prioritizes the complexities of the energy sector while underscoring economic factors, enabling the identification of necessary compensatory redistributions. The comparison of these scenarios will provide policymakers and stakeholders with valuable insights into the costs and benefits of transitioning to a more sustainable energy system in Latin America.

Keywords: Economía (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ene, nep-env and nep-lam
References: Add references at CitEc
Citations:

Downloads: (external link)
https://scioteca.caf.com/handle/123456789/2252

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dbl:dblwop:2252

Access Statistics for this paper

More papers in Research Department working papers from CAF Development Bank Of Latinamerica Contact information at EDIRC.
Bibliographic data for series maintained by Pablo Rolando ().