Energy policy and regional inequalities in the Brazilian economy
The objective of this paper is to evaluate the long-run regional impacts of the tariff policy of the Brazilian electric power sector. This sector has undergone a reform process that started in the 1990s. Since the beginning of the reform, two spatial trends of distribution of electric power tariffs have emerged among the Brazilian states, one of convergence and another of spatial divergence. These trends have been guided by the new electric power tariff policy and by the spatial features of the Brazilian economy, which is marked by a high degree of spatial concentration and hierarchical distribution of large markets. In addition, because of the presence of strong economies of scale, the recent electric power prices differentials might be caused by differentials in market size that provide better conditions for the achievement of economies of scale for electric power utility companies located in larger markets. Given the role of electric power as an important intermediate input in the production process and the interdependence between sectors, an Energy Interregional Computable General Equilibrium model was used to simulate the long-run regional impacts of electric power tariff policy in Brazil. The simulations showed that the heterogeneity of energy-intensity and the differentials of energy substitution drive the spatial impacts of changes in electric power prices. On the other hand, the recent trend of spatial dispersion of electric power prices might contribute to a decrease in the long-run economic growth and to an increase in the regional inequalities in Brazil.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nijkamp, P. & Perrels, A., 1985.
"Impacts of electricity rates on industrial location,"
Serie Research Memoranda
0002, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Nijkamp, Peter & Perrels, Adriaan, 1988. "Impacts of electricity rates on industrial location," Energy Economics, Elsevier, vol. 10(2), pages 107-116, April.
- T. R. Lakshmanan, 1981. "Regional Growth and Energy Determinants: Implications for the Future," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 1-24.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(1), pages 133-152.
- Venables, Anthony J, 1996.
"Equilibrium Locations of Vertically Linked Industries,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
- Venables, Anthony J, 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
- Anthony J. Venables, 1993. "Equilibrium Locations of Vertically Linked Industries," CEP Discussion Papers dp0137, Centre for Economic Performance, LSE.
- Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert Nicoud, 2003.
"Economic Geography and Public Policy,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Francisco J. Ramos-Real & Beatriz Tovar & Mariana Iootty & Edmar Fagundes de Almeida & Helder Jr. Queiroz Pinto, 2008.
"The evolution and main determinants of productivity in Brazilian electricity distribution 1998-2005: an empirical analysis,"
- Ramos-Real, Francisco Javier & Tovar, Beatriz & Iootty, Mariana & de Almeida, Edmar Fagundes & Pinto Jr., Helder Queiroz, 2009. "The evolution and main determinants of productivity in Brazilian electricity distribution 1998-2005: An empirical analysis," Energy Economics, Elsevier, vol. 31(2), pages 298-305, March.
- Philip D. Adams & Mark Horridge & Glyn Wittwer, 2003. "MMRF-GREEN: A Dynamic Multi-Regional Applied General Equilibrium Model of the Australian Economy, Based on the MMR and MONASH Models," Centre of Policy Studies/IMPACT Centre Working Papers g-140, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Faini, Riccardo, 1984. "Increasing Returns, Non-Traded Inputs and Regional Development," Economic Journal, Royal Economic Society, vol. 94(374), pages 308-23, June.
- Hanoch, Giora, 1971. "CRESH Production Functions," Econometrica, Econometric Society, vol. 39(5), pages 695-712, September.
When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:36:y:2013:i:c:p:241-255. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.