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Energy transitions and emerging economies: A multi-criteria analysis of policy options for hydropower surplus utilization in Paraguay


  • Blanco, G.
  • Amarilla, R.
  • Martinez, A.
  • Llamosas, C.
  • Oxilia, V.


In the context of increasing global efforts to migrate towards more sustainable energy systems, Paraguay is notable for boosting a power system based entirely on renewable sources. Paradoxically it has one of the lowest rates of electricity consumption in Latin America. Hence, a carefully crafted energy transition policy aimed at maximizing its energy resources could be the cornerstone of the country's long-term development strategy. The process of crafting public policy, particularly for emerging countries, entails an intricate decision problem involving several policy options with the potential to influence the country's welfare and all dimensions of socio-economic development. Thus, we present a policy-making tool applied to the multi-criteria decision energy policy problem in Paraguay, based on an Analytic Hierarchy Process model, which can aid in the crafting of more nuanced decisions. Here, four policy options are considered based on economic, technical, social, environmental and political criteria. Our findings are significant for the on-going policy debate on the “surplus question” in Paraguay and suggest that, considering the model employed, a policy oriented at directing the surplus to leverage the industrial cluster development is the best option. Additionally, we believe the proposed model could benefit other emerging economies for addressing similar policy dilemmas.

Suggested Citation

  • Blanco, G. & Amarilla, R. & Martinez, A. & Llamosas, C. & Oxilia, V., 2017. "Energy transitions and emerging economies: A multi-criteria analysis of policy options for hydropower surplus utilization in Paraguay," Energy Policy, Elsevier, vol. 108(C), pages 312-321.
  • Handle: RePEc:eee:enepol:v:108:y:2017:i:c:p:312-321
    DOI: 10.1016/j.enpol.2017.06.003

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    1. Dagoumas, Athanasios S. & Koltsaklis, Nikolaos E., 2019. "Review of models for integrating renewable energy in the generation expansion planning," Applied Energy, Elsevier, vol. 242(C), pages 1573-1587.
    2. González, Arturo & Ortigoza, Eduardo & Llamosas, Cecilia & Blanco, Gerardo & Amarilla, Raúl, 2019. "Multi-criteria analysis of economic complexity transition in emerging economies: The case of Paraguay," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    3. Paula Donaduzzi Rigo & Graciele Rediske & Carmen Brum Rosa & Natália Gava Gastaldo & Leandro Michels & Alvaro Luiz Neuenfeldt Júnior & Julio Cezar Mairesse Siluk, 2020. "Renewable Energy Problems: Exploring the Methods to Support the Decision-Making Process," Sustainability, MDPI, vol. 12(23), pages 1-27, December.
    4. Schulz, Christopher & Saklani, Udisha, 2021. "The future of hydropower development in Nepal: Views from the private sector," Renewable Energy, Elsevier, vol. 179(C), pages 1578-1588.
    5. Martín Bordón Lesme & Jaume Freire-González & Emilio Padilla Rosa, 2021. "The direct rebound effect for two income groups: The case of Paraguay," Working Papers wpdea2103, Department of Applied Economics at Universitat Autonoma of Barcelona.
    6. Bortoluzzi, Mirian & Furlan, Marcelo & dos Reis Neto, José Francisco, 2022. "Assessing the impact of hydropower projects in Brazil through data envelopment analysis and machine learning," Renewable Energy, Elsevier, vol. 200(C), pages 1316-1326.
    7. Indre Siksnelyte & Edmundas Kazimieras Zavadskas & Dalia Streimikiene & Deepak Sharma, 2018. "An Overview of Multi-Criteria Decision-Making Methods in Dealing with Sustainable Energy Development Issues," Energies, MDPI, vol. 11(10), pages 1-21, October.
    8. Milad Kolagar & Seyed Mohammad Hassan Hosseini & Ramin Felegari & Parviz Fattahi, 2020. "Policy-making for renewable energy sources in search of sustainable development: a hybrid DEA-FBWM approach," Environment Systems and Decisions, Springer, vol. 40(4), pages 485-509, December.

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