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 different closures to the model and compare their respective effects 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 significantly influence the real exchange rate, regardless of which closure is used.
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Bibliographic InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 96.
Date of creation: 2008
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Other versions of this item:
- Jan van Heerden & James Blignaut & Andre Jordaan, 2008. "On the Real Exchange Rate Effects of Higher Electricity Prices in South Africa," Working Papers 200836, University of Pretoria, Department of Economics.
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
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