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Effects of Increased Renewable Energy Consumptionon Electricity Prices: Evidence for Six South American Countries

Abstract:

This research examines the relationship between renewable energy consumption and electririty prices in six South American countries (Argentina, Bolivia, Colombia, Chile, Ecuador and Peru). Tire methodology used is a panel econometric model with annual data for the period 1990-2015. The results show that the consumption of renewable energies influences the price of electricity paid by households, although itsinfluence is verymode rate. On the other hand, it was observed that the coneumption oe renew able energies has no relationship withe thee energy prices of the industrial sector and the commercial and services sector. In the? countries analyzed, an increase in GDP causes an increase in the price of energy in the industrial sector. With more CO2 emissions and a rise in the international price of oil, the annual average price of the industrial sector decreases.