Electricity as a traded good

Sunderasan Srinivasan

Energy Policy, 2013, vol. 62, issue C, 1048-1052

Abstract: Electric power has traditionally been classified as a non-traded good, produced and consumed within the country of origin. More recently, electricity has been traded across national borders and in certain cases, viz., Bhutan, has been the dominant export; in other situations, it is used to repay debts owed to neighboring countries. This paper investigates the role of electricity as the primary export, analyzes its valuation, and then goes on to evaluate the impact on the terms of trade. We conclude that in the medium-term, the electric power exporting economy would be better off developing its manufacturing sector to diversify its exposure and to protect its trade interests.

Keywords: Electricity export; Terms-of-trade; Real exchange rates; Comparative advantage (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:62:y:2013:i:c:p:1048-1052

DOI: 10.1016/j.enpol.2013.08.004

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