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A CGE Assessment of the Impacts on Electricity Production and CO2 Emissions of a Residential Demand Response Program in Spain/Impacto sobre la producción eléctrica y emisiones de CO2 de un programa de gestión activa de demanda eléctrica residencial: Un MEGA para España



    () (Instituto de Investigacion Tecnologica (IIT), UNIVERSIDAD PONTIFICIA COMILLAS, ESPAÑA.)


    () (Instituto de Investigacion Tecnologica (IIT), UNIVERSIDAD PONTIFICIA COMILLAS, ESPAÑA.)


    () (Departamento de Economía. UNIVERSIDAD PÚBLICA DE NAVARRA, ESPAÑA.)


Changes in electricity demand can bring substantial shifts in the production structure, costs, and level of emissions of electricity systems. However, the electricity sector is not the only one affected as these changes can create significant repercussions in other sectors and, consequently, in the whole economy. In this paper, the indirect effects of a reduction in household demand for electricity have been evaluated for the Spanish economy. A multisectoral static computable general equilibrium model is employed to achieve this objective. The results clearly point out the importance of assessing other sectors’ behavior when assessing the consequences of promoting demand response policies, especially when dealing with pollutant emissions. Los cambios en los niveles de demanda de electricidad pueden implicar cambios sustanciales en la estructura de producción, costes y nivel de emisiones de los sistemas eléctricos. Sin embargo, el sector eléctrico no es el único afectado ya que estos cambios pueden crear importantes repercusiones en otros sectores y, por consiguiente, en toda la economía. En este trabajo se han evaluado los efectos indirectos de la reducción de la demanda de electricidad de los hogares para el mercado español. Se utiliza un modelo de equilibrio general aplicado (MEGA), multisectorial y estático para lograr este objetivo. Los resultados indican la importancia de evaluar el comportamiento de otros sectores al valorar las consecuencias de fomentar las políticas de gestión activa de la demanda eléctrica para el caso español, sobre todo cuando se trata de estudiar cambios en las emisiones de contaminantes.

Suggested Citation

  • Rodrigues, Renato & Linares, Pedro & Gómez-Plana, Antonio G., 2011. "A CGE Assessment of the Impacts on Electricity Production and CO2 Emissions of a Residential Demand Response Program in Spain/Impacto sobre la producción eléctrica y emisiones de CO2 de un programa de," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 665(36.)-66, Agosto.
  • Handle: RePEc:lrk:eeaart:29_2_17

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    References listed on IDEAS

    1. Parks, Richard W. & Weitzel, David, 1984. "Measuring the consumer welfare effects of time-differentiated electricity prices," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 35-64.
    2. Stephen P. Holland & Erin T. Mansur, 2008. "Is Real-Time Pricing Green? The Environmental Impacts of Electricity Demand Variance," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 550-561, August.
    3. Berg, Sanford V. & Capehart, Barney L. & Feldman, Jack & LaTour, Stephen & Sullivan, Robert L., 1983. "An interdisciplinary approach to cost/benefit analysis of innovative electric rates," Resources and Energy, Elsevier, vol. 5(4), pages 313-330, December.
    4. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, Enero.
    5. Dawkins, Christina & Srinivasan, T.N. & Whalley, John, 2001. "Calibration," Handbook of Econometrics,in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 58, pages 3653-3703 Elsevier.
    6. Caves, Douglas W. & Christensen, Laurits R. & Schoech, Philip E. & Hendricks, Wallace, 1984. "A comparison of different methodologies in a case study of residential time-of-use electricity pricing : Cost-Benefit Analysis," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 17-34.
    7. Severin Borenstein, 2005. "The Long-Run Efficiency of Real-Time Electricity Pricing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 93-116.
    8. Hill, Lawrence J., 1991. "Residential time-of-use pricing as a load management strategy : Effectiveness and applicability," Utilities Policy, Elsevier, vol. 1(4), pages 308-318, July.
    9. Ibon Galarraga & Mikel González-Eguino & Anil Markandya (ed.), 2011. "Handbook of Sustainable Energy," Books, Edward Elgar Publishing, number 13941.
    10. Timothy J. Kehoe, 1996. "Social accounting matrices and applied general equilibrium models," Working Papers 563, Federal Reserve Bank of Minneapolis.
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    More about this item


    Modelo de Equilibrio General Aplicado (MEGA); emisiones; respuesta de la demanda de electricidad. ; Computable General Equilibrium (CGE); Emissions; Electricity Demand Response.;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General


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