Renewable versus nonrenewable energy for Canada in a free trade agreement with China

Henry Thompson and Hugo Toledo

Energy Economics, 2022, vol. 105, issue C

Abstract: This paper predicts the adjustments in energy sources in Canada entering a free trade agreement FTA with China in an applied specific factors model including agriculture, manufacturing, services, and nonrenewable energy sectors. FTA price change scenarios lead to adjustments in sector outputs and capital returns, wages for five skill groups, and the price of electricity. Electricity is tied to renewable energy and treated as a factor of production. Increases in outputs, capital returns, and wages gains are offset by declines in manufacturing and the operator-handler wage. The declining demand for electricity will favor the nonrenewable sector over renewable energy.

Keywords: Canada; China; Free trade agreement; Renewable energy; Nonrenewable energy (search for similar items in EconPapers)
JEL-codes: F10 F13 F14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:105:y:2022:i:c:s0140988321005661

DOI: 10.1016/j.eneco.2021.105716

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