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Electricity regulation and economic growth

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  • María Teresa Costa-Campi

    () (University of Barcelona & IEB)

  • Jose García-Quevedo

    () (University of Barcelona & IEB)

  • Elisa Trujillo-Baute

    () (University of Warwick, University of Barcelona & IEB)

Abstract

The main objective of this paper is to analyse the effect of electricity regulation on economic growth. Although the relationship between electricity consumption and economic growth has been extensively analysed in the empirical literature, this framework has not been used to estimate the effect of electricity regulation on economic growth. Understanding this effect is essential for the assessment of regulatory policy. Specifically, we assess the effects of two major regulations, renewable energy promotion costs and network cost, on electricity consumption and growth. A dataset for the period 2007-2013 and 22 European countries was compiled based on CEER reports and EUROSTAT databases. The results of the empirical analysis show that the two regulation instruments have a negative effect on electricity consumption and economic growth and provide estimates of their effects on growth in quantitative terms.

Suggested Citation

  • María Teresa Costa-Campi & Jose García-Quevedo & Elisa Trujillo-Baute, 2017. "Electricity regulation and economic growth," Working Papers 2017/21, Institut d'Economia de Barcelona (IEB).
  • Handle: RePEc:ieb:wpaper:doc2017-21
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    References listed on IDEAS

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    Cited by:

    1. Papież, Monika & Śmiech, Sławomir & Frodyma, Katarzyna, 2019. "Effects of renewable energy sector development on electricity consumption – Growth nexus in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    2. Walheer, Barnabé, 2018. "Labour productivity growth and energy in Europe: A production-frontier approach," Energy, Elsevier, vol. 152(C), pages 129-143.
    3. Köksal, Emin & Ardıyok, Şahin, 2018. "Regulatory and market disharmony in the Turkish electricity industry," Utilities Policy, Elsevier, vol. 55(C), pages 90-98.

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    Keywords

    Electricity regulation; network costs; renewable energy; GDP;

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