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Reformas en la producción y distribución eléctrica y su relación con el sector manufacturero: el impacto de la sustitución de Luz y Fuerza del Centro por la Comisión Federal de Electricidad

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  • Montufar Helu Jiménez, Alejandro

Abstract

The present paper is an analysis of electricity on the Mexican context as an input provided by the government. The approach consists in evaluating the effect on the manufacturing sector of an improvement in efficiency on electricity production and distribution. Noteworthy, the improvement is consequence of an anti-competitive event (i.e. decree by which one of both electricity state-owned firms was extinguished); although, it does not represent a pro-competitive source in terms of quality and reliability in electricity distribution and production, it indeed embodies a positive shock. The main result is a negative average effect on manufacturing sector, which consists in a minimum decline of 5 per cent or maximum decline of 10 per cent, both in terms of value production; in monetized figures, it represents a cost as minimum as $ 1 095 million pesos or as maximum as $ 1 574 million pesos. In general, the negative impact on value production is smaller as industry consumes more electricity; even, it can become positive if consumption of electricity is high enough. Furthermore, the positive effect on production implied by consumption of electricity is smaller as industry generates in a higher proportion its own electricity. In conclusion, the policy did not generate a positive net impact due to adjustment costs which consist in the costs of transferring resources from one sector to another.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 49507.

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Date of creation: 13 Feb 2013
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Handle: RePEc:pra:mprapa:49507

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Keywords: electricity; mexico; adjustment costs; production; manufacturing sector; efficiency;

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  1. James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
  2. repec:idb:brikps:49558 is not listed on IDEAS
  3. Guglielmo Barone & Federico Cingano, 2008. "Service regulation and growth: evidence from OECD countries," Temi di discussione (Economic working papers) 675, Bank of Italy, Economic Research and International Relations Area.
  4. Emilio Gutierrez & Kensuke Teshima, 2011. "Import Competition and Environmental Performance: Evidence from Mexican Plant-level and Satellite Imagery Data," Working Papers 1101, Centro de Investigacion Economica, ITAM.
  5. Estache, Antonio & Rossi, Martin, 2004. "Have consumers benefited from the reforms in the electricity distribution sector in Latin America?," Policy Research Working Paper Series 3420, The World Bank.
  6. Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
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