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The Impact of Energy Prices on Electricity Production in Egypt

Author

Listed:
  • Doaa Akl Ahmed

    (Department of Economics, Faculty of Commerce, Benha University, Egypt.)

  • Amira Akl Ahmed

    (Department of Economics, Faculty of Commerce, Benha University, Egypt.)

Abstract

The paper examines the impact of energy prices on electricity generation by different fuel sources (i.e., oil, gas, and hydropower) in Egypt by employing the Autoregressive Distributed Lag approach and bounds test. Two models are estimated where the first accounts for oil prices only whereas the second include both gas and oil prices. In the first model, oil prices negatively affect the electricity produced from oil in the short-run with no impact in the long-run. Also, hydropower is complementary for oil in electricity production only in the short-term whereas gas is a substitute for oil in both long and short terms. In the second model, both energy prices influence electricity generation from oil in both short and long runs while gas and hydropower are respectively, substitute and complementary to oil in both long and short-run.

Suggested Citation

  • Doaa Akl Ahmed & Amira Akl Ahmed, 2019. "The Impact of Energy Prices on Electricity Production in Egypt," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 194-206.
  • Handle: RePEc:eco:journ2:2019-05-22
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    References listed on IDEAS

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    Cited by:

    1. Doaa M. Salman Abdou, 2019. "An alarm for the potential 2020 recession and its’ impacts on the developing countries: Evidence from Egypt," Bussecon Review of Finance & Banking (2687-2501), Bussecon International, vol. 1(2), pages 33-37, October.

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    More about this item

    Keywords

    Energy prices; Electricity generation; Fuel; elasticity of production;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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