Final energy demand in Portugal: How persistent it is and why it matters for environmental policy
AbstractThe objective of this paper is to analyze the degree of persistence of final energy demand in Portugal. Our results suggest the presence of a strong level of persistence at the aggregate level with demand for gas as the most persistent component and demand for coal as the least persistent. In turn, final demands for petroleum and biomass have levels of persistence similar to aggregate demand. The case of electricity is inconclusive. These results have important implications for the design of environmental policy. First, the fact that final energy demand is highly persistent means that the effects of environmental policies will tend to be long lasting. Second, the high persistence of gas and the fact that biomass and petroleum have levels of persistence that are similar suggests that fuel switching policies will be relatively easy to implement in these cases. Switching away from coal, however, may not be easy. Finally, the case of electricity is ambiguous.
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Bibliographic InfoPaper provided by Department of Economics, College of William and Mary in its series Working Papers with number 109.
Length: 17 pages
Date of creation: 23 Jul 2013
Date of revision:
Persistence; final energy demand; fuel switching; environmental policy; Portugal.;
Other versions of this item:
- Alfredo Marvão Pereira & José Manuel Belbute, 2011. "Final energy demand in Portugal: How persistent it is and why it matters for environmental policy," CEFAGE-UE Working Papers 2011_20, University of Evora, CEFAGE-UE (Portugal).
- Alfredo Marvão Pereira & José Manuel Belbute, 2011. "Final energy demand in Portugal: How persistent it is and why it matters for environmental policy," Economics Working Papers 2_2011, University of Évora, Department of Economics (Portugal).
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-05 (All new papers)
- NEP-ENE-2011-02-05 (Energy Economics)
- NEP-ENV-2011-02-05 (Environmental Economics)
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