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Interactions between electricity generation sources and economic activity in two Nord Pool systems. Evidence from Estonia and Sweden

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  • Tiago Lopes Afonso
  • António Cardoso Marques
  • José Alberto Fuinhas
  • e Marco Mano Saldanha

Abstract

The interactions between electricity sources and industrial production in Estonia and Sweden are analysed based on monthly data. The availability of data defines the time spans from January 2010 to September 2015 for Sweden and from April 2010 to December 2014 for Estonia. These countries are particularly interesting to study because of their dissimilar generation mix. Estonia’s generation mix is based on oil shale, while Sweden’s is based on nuclear plants and hydroelectricity. In short, both countries’ energy mixes are based on endogenous natural resources. The ARDL model was applied, allowing the long-run and short-run effects to be captured. The results prove that economic growth is sustained by natural endogenous resources. Estonia should continue to improve the usage of renewable energies, using fossil sources in support, in order to reduce emissions and to meet international environmental commitments. Sweden should promote the efficient usage of various renewable sources.

Suggested Citation

  • Tiago Lopes Afonso & António Cardoso Marques & José Alberto Fuinhas & e Marco Mano Saldanha, 2018. "Interactions between electricity generation sources and economic activity in two Nord Pool systems. Evidence from Estonia and Sweden," Applied Economics, Taylor & Francis Journals, vol. 50(29), pages 3115-3127, June.
    • Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3115-3127
    DOI: 10.1080/00036846.2017.1418074
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    Cited by:

    1. Papież, Monika & Śmiech, Sławomir & Frodyma, Katarzyna, 2019. "Effects of renewable energy sector development on electricity consumption – Growth nexus in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    2. Marques, António Cardoso & Junqueira, Thibaut Manuel, 2022. "European energy transition: Decomposing the performance of nuclear power," Energy, Elsevier, vol. 245(C).

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