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https://www.um.edu.mt/library/oar/handle/123456789/33397
Title: | The macroeconomic effects of efficiency gains in electricity production in Malta |
Authors: | Rapa, Noel |
Keywords: | Electric utilities -- Economic aspects -- Malta Structural adjustment (Economic policy) -- Malta Energy consumption Energy policy -- European Union countries |
Issue Date: | 2017-08 |
Publisher: | Central Bank of Malta |
Citation: | Rapa, N. (2017). The macroeconomic effects of efficiency gains in electricity production in Malta. Policy note August 2017, Central Bank of Malta. |
Abstract: | This note studies the impact energy market reforms might have on the Maltese economy in the medium-to-long run using a DSGE model. Contrary to previous studies, this note takes in consideration the changes in the marginal cost of electricity production of Enemalta under a number of energy production setups. Results show that the decommissioning of the Marsa power plant and the installation of an undersea interconnector results in a fall in marginal costs, and therefore an increase in long run output, under both baseline and high oil price scenarios ranging between 1.61% and 2.53%. This energy setup is however consistent with an increase in marginal costs, and therefore a fall in long run output of 0.41% in the case of a low oil price scenario. The future setup of natural gas fired turbines results in a fall in marginal costs and an increase in long run output in all oil price scenarios, ranging between 0.81% in the low oil price scenario to 3.00% in case of high oil prices. |
URI: | https://www.um.edu.mt/library/oar//handle/123456789/33397 |
Appears in Collections: | 2017 |
Files in This Item:
File | Description | Size | Format | |
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The_macroeconomic_effects_of_efficiency_gains_in_electricity_production_in_Malta_2017.pdf | 728.98 kB | Adobe PDF | View/Open |
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