Economics at your fingertips  

Toward a less natural gas dependent energy mix in Spain: Crowding-out effects of shifting to biomass power generation

María J. Colinet, José M. Cansino, José M. González-Limón and Manuel Ordóñez

Utilities Policy, 2014, vol. 31, issue C, 29-35

Abstract: This paper estimates the impact of a hypothetical change in Spain's energy mix on a number of productive sectors. The change would be brought about by substituting power generation from natural gas with generation from biomass. The total amount of electricity supplied has been calculated to remain constant so that a crowding-out effect would be derived from the displacement of one technology with another. An input–output (IO) framework has been used to estimate the overall economic impact on 26 productive sectors included on Spain's 2007 IO Table. Based on the available literature, the consideration of net impact improves the analysis. The results show that the overall net impact across all productive sectors of this change in the energy mix would be positive and equal to about 0.5% for the period. Higher impacts were measured for the ‘Electricity power and Electricity Supply’ sector (15.4%) followed by the ‘Agriculture, Hunting, Forestry’ sector (7.1%). Only the ‘Gas generation and Gas supply’ sector showed a negative impact (–2.5%), which is consistent with the reduced use of natural gas. The overall calculated total impact for Spain's productive sector was equal to € 8074.95 million at the 2007-equivalent value.

Keywords: Biomass for electricity generation; Natural gas generation; Combined cycle technology; Input–output framework; Fuel substitution; Renewable energy (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
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:

DOI: 10.1016/j.jup.2014.07.006

Access Statistics for this article

Utilities Policy is currently edited by D. Smith

More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-05-02
Handle: RePEc:eee:juipol:v:31:y:2014:i:c:p:29-35