Marques, António CardosoFuinhas, José Alberto2019-01-142019-01-142016http://hdl.handle.net/10400.6/6760This paper uses monthly data for the time span 2006:M01 to 2014:M06, to study the relationship between electricity generation regimes, both ordinary and special, and economic activity in Portugal. An autoregressive distributed lag bounds test approach is pursued to analyse the short- and long-run dynamics between renewable/non-renewable electricity sources and industrial production. Results show that both ordinary thermal sources and hydro sources are driving forces behind electricity from the special regime. Economic activity is stimulating the special regime, but, conversely, the special regime hampers the growth of industrial production. It is demonstrated that a crucial role is being played by large-scale hydropower in accommodating the special regime in the electricity mix. This source is causing economic activity, while at the same time, backing up new renewable sources.engjournal article10.1063/1.4944959