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Cost-benefit analysis of energy scenarios for the Mexican power sector

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  • Islas, J.
  • Manzini, F.
  • Martínez, M.

Abstract

Three Mexican power sector scenarios for the period 1996–2025 are subjected to a cost-benefit analysis. The three scenarios are: base (using fuel oil), official (introducing natural gas) and transition (incorporating renewable energy). Also technical, economic and energy resources databases are constructed to supply information for the analysis. Benefit/cost ratios (B/C) are obtained by varying the following economic parameters: fossil fuel average prices, discount rates and capital costs evolution as an expression of technological change. For present technical and economic conditions, the B/C ratio of the official scenario is more economically favorable than that of the transition and the transition is more favorable than the base scenario. Also, the viability of the transition scenario increases rapidly when technological change is taken into consideration.

Suggested Citation

  • Islas, J. & Manzini, F. & Martínez, M., 2003. "Cost-benefit analysis of energy scenarios for the Mexican power sector," Energy, Elsevier, vol. 28(10), pages 979-992.
    • Handle: RePEc:eee:energy:v:28:y:2003:i:10:p:979-992
    DOI: 10.1016/S0360-5442(03)00048-3
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    References listed on IDEAS

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    1. Manzini, F & Martı́nez, M, 1999. "Using final energies to plan a sustainable future for Mexico," Energy, Elsevier, vol. 24(11), pages 945-958.
    2. Sathaye, Jayant A. & Dixon, Robert K. & Rosenzweig, Cynthia, 1997. "Climate change country studies," Applied Energy, Elsevier, vol. 56(3-4), pages 225-235, March.
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    1. Mikkel Bojesen & Luc Boerboom & Hans Skov-Petersen, 2014. "Towards a sustainable capacity expansion of the Danish biogas sector," IFRO Working Paper 2014/03, University of Copenhagen, Department of Food and Resource Economics.
    2. Cancino-Solórzano, Yoreley & Villicaña-Ortiz, Eunice & Gutiérrez-Trashorras, Antonio J. & Xiberta-Bernat, Jorge, 2010. "Electricity sector in Mexico: Current status. Contribution of renewable energy sources," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 454-461, January.
    3. Singhabhandhu, Ampaitepin & Tezuka, Tetsuo, 2010. "A perspective on incorporation of glycerin purification process in biodiesel plants using waste cooking oil as feedstock," Energy, Elsevier, vol. 35(6), pages 2493-2504.
    4. Dagher, Leila & Ruble, Isabella, 2011. "Modeling Lebanon’s electricity sector: Alternative scenarios and their implications," Energy, Elsevier, vol. 36(7), pages 4315-4326.
    5. Barragán-Beaud, Camila & Pizarro-Alonso, Amalia & Xylia, Maria & Syri, Sanna & Silveira, Semida, 2018. "Carbon tax or emissions trading? An analysis of economic and political feasibility of policy mechanisms for greenhouse gas emissions reduction in the Mexican power sector," Energy Policy, Elsevier, vol. 122(C), pages 287-299.
    6. Antonio Rodríguez-Martínez & Yolanda Lechón & Helena Cabal & David Castrejón & Marco Polo Flores & R.J. Romero, 2018. "Consequences of the National Energy Strategy in the Mexican Energy System: Analyzing Strategic Indicators with an Optimization Energy Model," Energies, MDPI, vol. 11(10), pages 1-19, October.
    7. Halkos, George & Tzeremes, Panagiotis, 2015. "Assessing greenhouse gas emissions in Estonia's energy system," MPRA Paper 66105, University Library of Munich, Germany.
    8. Vidal-Amaro, Juan José & Østergaard, Poul Alberg & Sheinbaum-Pardo, Claudia, 2015. "Optimal energy mix for transitioning from fossil fuels to renewable energy sources – The case of the Mexican electricity system," Applied Energy, Elsevier, vol. 150(C), pages 80-96.
    9. Prasad, Ravita D. & Bansal, R.C. & Raturi, Atul, 2014. "Multi-faceted energy planning: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 686-699.
    10. Huacuz, Jorge M., 2005. "The road to green power in Mexico--reflections on the prospects for the large-scale and sustainable implementation of renewable energy," Energy Policy, Elsevier, vol. 33(16), pages 2087-2099, November.
    11. Strantzali, Eleni & Aravossis, Konstantinos, 2016. "Decision making in renewable energy investments: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 885-898.
    12. Bazán-Perkins, Sergio D. & Fernández-Zayas, José L., 2008. "Evaluation of Mexico's 1975-2000 energy plan," Energy Economics, Elsevier, vol. 30(5), pages 2569-2586, September.
    13. Diakoulaki, D. & Karangelis, F., 2007. "Multi-criteria decision analysis and cost-benefit analysis of alternative scenarios for the power generation sector in Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(4), pages 716-727, May.
    14. Cosentino, Valentina & Favuzza, Salvatore & Graditi, Giorgio & Ippolito, Mariano Giuseppe & Massaro, Fabio & Riva Sanseverino, Eleonora & Zizzo, Gaetano, 2012. "Smart renewable generation for an islanded system. Technical and economic issues of future scenarios," Energy, Elsevier, vol. 39(1), pages 196-204.
    15. Mezher, Toufic & Dawelbait, Gihan & Abbas, Zeina, 2012. "Renewable energy policy options for Abu Dhabi: Drivers and barriers," Energy Policy, Elsevier, vol. 42(C), pages 315-328.
    16. Islas, Jorge & Manzini, Fabio & Masera, Omar, 2007. "A prospective study of bioenergy use in Mexico," Energy, Elsevier, vol. 32(12), pages 2306-2320.

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