Energy Policy and Regional Inequalities in the Brazilian Economy
The objective of this paper is to evaluate the long-run regional impacts of tariff policy of the Brazilian electric power sector. The structural reforms carried on this sector determined the emergence of two different spatial distribution trends of the electric power tariffs among the Brazilian states: one of convergence and another of spatial divergence. The regional dispersion of tariffs is being influenced by the spatial features of the Brazilian economy, which is marked by the high degree of spatial concentration and the hierarchical distribution of large markets on the space. In spite of this, the electric power price differentials in Brazil tend to be determined by the market size differentials, which provide different conditions for gains from economies of scale by the electric power distribution companies. Based on these elements and in the fact that electric power is an important input for the production process, an Interregional Computable General Equilibrium model for energy policy analysis was built. The simulations showed that the input-output linkages, the spatial heterogeneity of the electric power intensity and the regional energy substitution differentials are the main determinants of spatial impacts of electric power price changes in Brazil. On the other hand, the recent trend of spatial divergence of the electric power prices may be contributing to reduce the national real GDP and to increase the regional inequalities in Brazil.
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.:
- 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.
- 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.
- Venables, Anthony J, 1993.
"Equilibrium Locations of Vertically Linked Industries,"
CEPR Discussion Papers
802, C.E.P.R. Discussion Papers.
- 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 341-359, May.
- Anthony J. Venables, 1993. "Equilibrium Locations of Vertically Linked Industries," CEP Discussion Papers dp0137, Centre for Economic Performance, LSE.
- 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,"
Elsevier, vol. 31(2), pages 298-305, March.
- 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," Working Papers 2008-41, FEDEA.
- repec:hal:journl:halshs-00179815 is not listed on IDEAS
- Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
- Nijkamp, Peter & Perrels, Adriaan, 1988.
"Impacts of electricity rates on industrial location,"
Elsevier, vol. 10(2), pages 107-116, April.
- 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.
- Hanoch, Giora, 1971. "CRESH Production Functions," Econometrica, Econometric Society, vol. 39(5), pages 695-712, September.
- Beatriz Tovar & Francisco Javier Ramos-Real & Edmar Fagundes de Almeida, 2009. "Productivity evolution and Scale effects in Brazilian Electricity Distribution Industry. Evidence from 1998-2005 period," Economic Reports 04-09, FEDEA.
- Haddad, Eduardo A. & Hewings, Geoffrey J.D., 2005. "Market imperfections in a spatial economy: some experimental results," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 476-496, May.
- Nijkamp, Peter, 1980. "Energy problems and regional development : Editorial note," Regional Science and Urban Economics, Elsevier, vol. 10(3), pages 299-301, August.
- Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005.
"Economic Geography and Public Policy,"
Princeton University Press,
edition 1, number 7524.
- 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) halshs-00179815, HAL.
- Faini, Riccardo, 1984. "Increasing Returns, Non-Traded Inputs and Regional Development," Economic Journal, Royal Economic Society, vol. 94(374), pages 308-323, June.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- P Nijkamp, 1983. "Regional dimensions of energy scarcity," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 1(2), pages 179-192, April.
- 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.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p157. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.