Energy policy and regional inequalities in the Brazilian economy
AbstractThe objective of this paper is to evaluate the long-run regional impacts of the tariff policy of the Brazilian electric power sector. This sector has undergone a reform process that started in the 1990s. Since the beginning of the reform, two spatial trends of distribution of electric power tariffs have emerged among the Brazilian states, one of convergence and another of spatial divergence. These trends have been guided by the new electric power tariff policy and by the spatial features of the Brazilian economy, which is marked by a high degree of spatial concentration and hierarchical distribution of large markets. In addition, because of the presence of strong economies of scale, the recent electric power prices differentials might be caused by differentials in market size that provide better conditions for the achievement of economies of scale for electric power utility companies located in larger markets. Given the role of electric power as an important intermediate input in the production process and the interdependence between sectors, an Energy Interregional Computable General Equilibrium model was used to simulate the long-run regional impacts of electric power tariff policy in Brazil. The simulations showed that the heterogeneity of energy-intensity and the differentials of energy substitution drive the spatial impacts of changes in electric power prices. On the other hand, the recent trend of spatial dispersion of electric power prices might contribute to a decrease in the long-run economic growth and to an increase in the regional inequalities in Brazil.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 36 (2013)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/eneco
Energy policy; Regulation; Spatial concentration; CGE modeling;
Other versions of this item:
- Gervásio F. Santos & Eduardo A. Haddad, Geoffrey J. D. Hewings, 2011. "Energy Policy and Regional Inequalities in the Brazilian Economy," Working Papers, Department of Economics 2011_09, University of São Paulo (FEA-USP).
- Gervasio Ferreira Dos Santos & Eduardo A. Haddad & Geoffrey J. D. Hewings, 2011. "Energy Policy And Regional Inequalitiesin The Brasilian Economy," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 091, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Gervasio Santos & Eduardo Haddad & Geoffrey Hewings, 2011. "Energy Policy and Regional Inequalities in the Brazilian Economy," ERSA conference papers ersa10p157, European Regional Science Association.
- P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
- P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
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