On the Real Exchange Rate Effects of Higher Electricity Prices in South Africa
AbstractThe paper uses a static Computable General Equilibrium (CGE) model of South Africa and simulates various shocks to the price of electricity. We attempt di¤erent closures to the model and compare their respective e¤ects on the Consumer Price Index. In a CGE model, this is measuring the real appreciation of the exchange rate, or international trade competitiveness. In general, we conclude that electricity prices per se does not signi?cantly in?uence the real exchange rate, regardless of which closure is used.
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Bibliographic InfoPaper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200836.
Length: 17 pages
Date of creation: Nov 2008
Date of revision:
Other versions of this item:
- Jan van Heerden & James Blignaut & AndrÃ© Jordaan, 2008. "On the Real Exchange Rate Effects of Higher Electricity Prices in South Africa," Working Papers 96, Economic Research Southern Africa.
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
This paper has been announced in the following NEP Reports:
- NEP-AFR-2008-11-25 (Africa)
- NEP-ALL-2008-11-25 (All new papers)
- NEP-CBA-2008-11-25 (Central Banking)
- NEP-ENE-2008-11-25 (Energy Economics)
- NEP-MAC-2008-11-25 (Macroeconomics)
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