IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/57130.html
   My bibliography  Save this paper

An estimate of the possible impact of lower electricity and water tariffs on the Maltese economy

Author

Listed:
  • Grech, Aaron George

Abstract

This paper presents estimates of the possible impact on the Maltese economy of the reduction in electricity and water tariffs to residential customers that took place on 31 March 2014 and the subsequent lowering of tariffs to commercial customers, which is expected to take place in March 2015. These estimates are calculated using the structural macro-econometric model described in Grech et al (2013). Assuming a full and immediate pass-through of these measures, this paper suggests that Malta’s real GDP could be boosted by 0.65 percentage points by 2020, with the bulk of the impact being felt during 2015 and 2016. The measures should also lead to lower consumer price inflation and contribute towards an improvement in the international competitiveness of the Maltese economy.

Suggested Citation

  • Grech, Aaron George, 2014. "An estimate of the possible impact of lower electricity and water tariffs on the Maltese economy," MPRA Paper 57130, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:57130
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/57130/1/MPRA_paper_57130.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Grech, Aaron George & Grech, Owen & Micallef, Brian & Rapa, Noel & Gatt, William, 2013. "A Structural Macro-Econometric Model of the Maltese Economy," MPRA Paper 46128, University Library of Munich, Germany.
    2. repec:pra:mprapa:46125 is not listed on IDEAS
    3. Grech, Aaron George & Micallef, Brian, 2014. "Assessing the supply of the Maltese economy using a production function approach," MPRA Paper 53882, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Noel Rapa, "undated". "The Macroeconomic Effects of Efficiency Gains in Electricity Production in Malta," CBM Policy Papers PP/05/2017, Central Bank of Malta.
    2. Brian Micallef & Reuben Ellul, 2020. "How Do Estimates of Inflation Persistence in Malta Compare with Other EU Countries?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(7), pages 1-31, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aaron G Grech, "undated". "The evolution of the Maltese economy since independence," CBM Working Papers WP/05/2015, Central Bank of Malta.
    2. Aaron G. Grech (ed.), 2015. "The evolution of the Maltese Economy since Independence," CBM Ebooks, Central Bank of Malta, edition 1, number 02.
    3. Brian Micallef, 2017. "Empirical Estimates of Okun¡¯s Law in Malta," Applied Economics and Finance, Redfame publishing, vol. 4(1), pages 138-148, January.
    4. Olofin, S.O. & Olubusoye, O.E. & Mordi, C.N.O. & Salisu, A.A. & Adeleke, A.I. & Orekoya, S.O. & Olowookere, A.E. & Adebiyi, M.A., 2014. "A small macroeconometric model of the Nigerian economy," Economic Modelling, Elsevier, vol. 39(C), pages 305-313.
    5. William Gatt, "undated". "The determinants of household saving behaviour in Malta," CBM Working Papers WP/03/2014, Central Bank of Malta.
    6. Brian Micallef & Silvio Attard, 2015. "Assessing the macroeconomic impact of extending hotel height limitations," CBM Working Papers WP/01/2015, Central Bank of Malta.
    7. Aaron G Grech, 2015. "The macroeconomic impact of the income tax reductions in Malta," CBM Working Papers WP/02/2015, Central Bank of Malta.
    8. Brian Micallef, 2018. "Estimating the Impact of Structural Reforms to Increase the Female Participation Rate in Malta," International Journal of Social Science Studies, Redfame publishing, vol. 6(8), pages 73-84, August.
    9. Aaron G Grech & Noel Rapa, "undated". "Trends in Malta’s current account and their underlying causes," CBM Policy Papers PP/03/2016, Central Bank of Malta.
    10. Aaron G Grech, "undated". "The possible impact of pension age changes on Malta’s potential output," CBM Policy Papers PP/01/2016, Central Bank of Malta.
    11. Noel Rapa, 2020. "A Sectoral Model Extension to STREAM," CBM Working Papers WP/08/2020, Central Bank of Malta.
    12. Kristian Orsini & Arian Perić, 2021. "Understanding the Croatian Export Boom," European Economy - Economic Briefs 065, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    13. Owen Grech & Noel Rapa, 2016. "STREAM: A structural macro-econometric model of the Maltese economy," CBM Working Papers WP/01/2016, Central Bank of Malta.
    14. William Gatt & Owen Grech, "undated". "An assessment of the Maltese housing market," CBM Policy Papers PP/02/2016, Central Bank of Malta.
    15. Ian Borg, "undated". "Fiscal Multipliers in Malta," CBM Working Papers WP/06/2014, Central Bank of Malta.
    16. Brian Micallef, 2017. "A Sectoral Supply-Side Model to Assess the Impact of Labour Market Reforms in Malta," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(4), pages 105-118, April.
    17. William Gatt, 2016. "Time variation, asymmetry and threshold effect in Malta's Phillips curve," CBM Working Papers WP/02/2016, Central Bank of Malta.

    More about this item

    Keywords

    Macro-econometric modelling; Malta; utility tariffs.;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:57130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.