IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2014-02-1.html
   My bibliography  Save this article

Cointegration Relationships to Estimate the Marginal Cost of Deficit in Planning a Hydrothermal System: The Case of Brazil

Author

Listed:
  • Lucio Guido Tapia Carpio

    (Federal University of Rio de Janeiro, Energy Planning Program, COPPE/UFRJ, Brazil)

Abstract

The aim of this study is to analyze the behavior of gross domestic product (GDP) compared to electricity consumption in Brazil to estimate the curve of deficit marginal cost. The deficit cost is used as exogenous parameter in the chain of models for planning the operation and expansion of a hydrothermal system as part of the total cost of operation. The results show a cointegration relationship between GDP and electricity consumption; therefore, there is a long-term equilibrium relationship between GDP and electricity consumption. This relationship is used to estimate the curve of deficit marginal cost. The possible short-term imbalance can be mitigated using the vector error correction model (VEC).

Suggested Citation

  • Lucio Guido Tapia Carpio, 2014. "Cointegration Relationships to Estimate the Marginal Cost of Deficit in Planning a Hydrothermal System: The Case of Brazil," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 117-124.
    • Handle: RePEc:eco:journ2:2014-02-1
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijeep/article/download/734/414
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijeep/article/view/734/414
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Al Aali-Bujari & Francisco Venegas-Mart nez & Roberto J. Santill n-Salgado, 2018. "On the Stock Market-Electricity Sector Nexus in Latin America: A Dynamic Panel Data Model," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 148-154.
    2. Botelho, Vinícius, 2019. "Estimating the economic impacts of power supply interruptions," Energy Economics, Elsevier, vol. 80(C), pages 983-994.
    3. Daniel Ştefan Armeanu & Ştefan Cristian Gherghina & George Pasmangiu, 2019. "Exploring the Causal Nexus between Energy Consumption, Environmental Pollution and Economic Growth: Empirical Evidence from Central and Eastern Europe," Energies, MDPI, vol. 12(19), pages 1-27, September.

    More about this item

    Keywords

    Energy deficit; Cointegration; Rationing; Energy planningJournal: International Journal of Energy Economics and Policy;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

    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:eco:journ2:2014-02-1. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    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.