Reformas en la producción y distribución eléctrica y su relación con el sector manufacturero: el impacto de la sustitución de Luz y Fuerza del Centro por la Comisión Federal de Electricidad

Montufar Helu Jiménez, Alejandro (2013): Reformas en la producción y distribución eléctrica y su relación con el sector manufacturero: el impacto de la sustitución de Luz y Fuerza del Centro por la Comisión Federal de Electricidad.

Abstract

The present paper is an analysis of electricity on the Mexican context as an input provided by the government. The approach consists in evaluating the effect on the manufacturing sector of an improvement in efficiency on electricity production and distribution. Noteworthy, the improvement is consequence of an anti-competitive event (i.e. decree by which one of both electricity state-owned firms was extinguished); although, it does not represent a pro-competitive source in terms of quality and reliability in electricity distribution and production, it indeed embodies a positive shock. The main result is a negative average effect on manufacturing sector, which consists in a minimum decline of 5 per cent or maximum decline of 10 per cent, both in terms of value production; in monetized figures, it represents a cost as minimum as $ 1 095 million pesos or as maximum as $ 1 574 million pesos. In general, the negative impact on value production is smaller as industry consumes more electricity; even, it can become positive if consumption of electricity is high enough. Furthermore, the positive effect on production implied by consumption of electricity is smaller as industry generates in a higher proportion its own electricity. In conclusion, the policy did not generate a positive net impact due to adjustment costs which consist in the costs of transferring resources from one sector to another.

• Item Type: MPRA Paper
• English Title: Reforms in the production and distribution of electricity and its relationship to the manufacturing sector: the impact of replacing Luz y Fuerza del Centro by the Federal Electricity Commission
• Language: English
• Keywords: electricity; mexico; adjustment costs; production; manufacturing sector; efficiency
• Subjects: L - Industrial Organization > L5 - Regulation and Industrial Policy > L52 - Industrial Policy ; Sectoral Planning Methods; L - Industrial Organization > L6 - Industry Studies: Manufacturing; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L98 - Government Policy; Y - Miscellaneous Categories > Y4 - Dissertations (unclassified)

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