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Modelling Non-Renewable Energy in Mauritius: In Quest for Sustainable Policies towards a Greener Economy

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  • Indranarain Ramlall

    (Department of Economics and Statistics, University of Mauritius, Réduit,Mauritius.)

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    Abstract

    This paper sheds light on the interaction between energy consumption and energy production in an upper-income developing country. Results show that Industrial consumption of energy in Mauritius is driven mainly by Fuel source while Commercial use is accommodated by a mixture of Coal and Fuel sources. Bagasse and Hydro energy generations undermine the use of Coal and Fuel, all demonstrating an inherent greening phenomenon embedded in the energy process. However, their size effects are low. Findings further confirm sustainability in energy generation and absorption based on a slightly above one long-term elasticity coefficient between energy production and consumption. Overall, results suggest that Mauritius has to implement vigorous measures in view of greening its energy processes. Policy wise, this could signify the urgent need of both Commercial and Industrial usage taxes to stimulate a greener economy.

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    Bibliographic Info

    Article provided by Econjournals in its journal International Journal of Energy Economics and Policy.

    Volume (Year): 2 (2012)
    Issue (Month): 3 ()
    Pages: 123-133

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    Handle: RePEc:eco:journ2:2012-03-5

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    Web page: http://www.econjournals.com

    Related research

    Keywords: VAR; Mauritius; Sustainable/Green Policies; Variance Decomposition; Impulse Response; Energy Policies;

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    7. Dodonov, Boris & Opitz, Petra & Pfaffenberger, Wolfgang, 2004. "How much do electricity tariff increases in Ukraine hurt the poor?," Energy Policy, Elsevier, vol. 32(7), pages 855-863, May.
    8. Beenstock, Michael & Goldin, Ephraim & Nabot, Dan, 1999. "The demand for electricity in Israel," Energy Economics, Elsevier, vol. 21(2), pages 168-183, April.
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