Impact of electricity shortages during energy transitions in Taiwan

Kuei-Yen Wu, Yun-Hsun Huang and Jung-Hua Wu

Energy, 2018, vol. 151, issue C, 622-632

Abstract: Taiwan has been limited by several factors in its pursuit of energy transitions and rapid development of green energy, including goals of achieving a nuclear-free homeland, reducing air pollution, and restrictions on receiving capacity of liquefied natural gas reception terminals. In other words, Taiwan is restricted to use nuclear energy or thermal power generation as transitional technologies to bridge the gap in electricity supply-demand before the maturation of renewable energy technologies. If electricity demand continues to grow, Taiwan will face the risk of electricity shortages, which will affect industrial sectors. This study applied the supply-driven input-output and the price models to analyse economic impacts of electricity shortages on each sector. The simulation results revealed that when electricity supply was reduced by 1 kWh, Taiwan's overall economic output would decrease by 8.98 NTD in 2011. A comparison of these sectors shows that sectors with higher electricity allocation coefficients had higher direct output impacts, while those with higher forward linkages generated higher indirect output impacts. The findings also showed that in the majority of sectors, indirect output impacts were higher than direct output impacts. In other words, neglecting indirect output impacts will result in underestimation of total impacts of electricity shortages.

Keywords: Supply-driven input-output model; Price model; Electricity shortage; Inter-industry analysis; Economic impact (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544218304572
Full text for ScienceDirect subscribers only

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:eee:energy:v:151:y:2018:i:c:p:622-632

DOI: 10.1016/j.energy.2018.03.049

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().