Scope of Electricity Efficiency Improvement in Switzerland until 2035

Boris Krey ()
Additional contact information
Boris Krey: Socioeconomic Institute, University of Zurich

No 813, SOI - Working Papers from Socioeconomic Institute - University of Zurich

Abstract: This study uses Markowitz mean-variance portfolio theory with forecasted data for the years 2005 to 2035 to determine efficient electricity generating technology mixes for Switzerland. The SURE procedure has been applied to filter out the systematic components of the covariance matrix. Results indicate that risk-averse electricity users in 2035 gain in terms of higher expected return, less risk, more security of supply and a higher return-to-risk ratio compared to 2000 by adopting a feasible minimum variance (MV) technology mix containing 28 percent Gas, 20 percent Run of river, 13 percent Storage hydro, 9 percent Nuclear, and 5 percent each of Solar, Smallhydro, Wind, Biomass, Incineration, and Biogas respectively. However, this mix comes at the cost of higher CO2 emissions.

Keywords: Efficiency Frontier; Herfindahl-Hirschman Index (HH); Power Generation; Mean-Variance Portfolio Theory; Seemingly Unrelated Regression Estimations (SURE); Shannon-Wiener Index (SW) (search for similar items in EconPapers)
JEL-codes: C23 C32 G11 Q49 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2008-10
New Economics Papers: this item is included in nep-ene
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.zora.uzh.ch/id/eprint/52400/1/wp0813.pdf first version, 2008 (application/pdf)

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:soz:wpaper:0813

Access Statistics for this paper

More papers in SOI - Working Papers from Socioeconomic Institute - University of Zurich Contact information at EDIRC.
Bibliographic data for series maintained by Severin Oswald ().