On the Dynamics of Generating Electricity from Diversified Sources: Evidence from Portugal

Marques, António Cardoso; Fuinhas, José Alberto; Pereira, Agostinho Filipe da Rocha

http://hdl.handle.net/10400.6/6825

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Authors

Marques, António Cardoso

Fuinhas, José Alberto

Pereira, Agostinho Filipe da Rocha

Abstract(s)

By studying the interaction among wind power, traditional sources including largehydro (ordinary regime), electricity consumption and electricity exports, the dynamics of generating electricity from diversified sources is the focus of this paper. Data for Portugal with daily frequency, for the time span from July 2007 until December 2012, are used. On the whole, the results confirm that the variables interact with each other (endogeneity). Wind power drives its own path, which is largely the outcome of political decisions. The analysis also suggests that the impact on economic activity is greater from the ordinary regime than from wind power.