Effects of Increased Renewable Energy Consumption on Electricity Prices: Evidence for Six South American Countries

Ronny Correa-Quezada, María Tituaña-Castillo, María de la Cruz del Río-Rama and José Álvarez-García
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María de la Cruz del Río-Rama: Business Management and Marketing Department, Faculty of Business Sciences and Tourism, University of Vigo, 32004 Ourense, Spain
José Álvarez-García: Departamento de Economía Financiera y Contabilidad, Instituto Universitario de Investigación para el Desarrollo Territorial Sostenible (INTERRA), Facultad de Empresa Finanzas y Turismo, Universidad de Extremadura, Avd. de la Universidad, nº 47, 10071 Caceres, Spain

Energies, 2022, vol. 15, issue 2, 1-19

Abstract: This research examines the relationship between renewable energy consumption and electricity prices in six South American countries (Argentina, Bolivia, Colombia, Chile, Ecuador and Peru). The methodology used is a panel econometric model with annual data for the period 1990–2015. The results show that the consumption of renewable energies influences the price of electricity paid by households, although its influence is very moderate. On the other hand, it was observed that the consumption of renewable energies has no relationship with the energy prices of the industrial sector and the commercial and services sector. In the countries analyzed, an increase in GDP causes an increase in the price of energy in the industrial sector. With more CO 2 emissions and a rise in the international price of oil, the annual average price of the industrial sector decreases.

Keywords: electrical energy; renewable energy; South America; panel data (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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