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Harnessing the Sun and Wind for Economic Development? An Economy-Wide Assessment for Egypt

Author

Listed:
  • Perrihan Al-Riffai
  • Julian Blohmke
  • Clemens Breisinger
  • Manfred Wiebelt

    (Poverty Reduction, Equity and Development, Kiel Institute for the World Economy)

Abstract
While the recent political transition in Egypt has put much-needed policy reforms on hold, our paper suggests that under certain conditions, fostering the national renewable energy strategy may be a promising way of giving an ailing economy an urgently needed impetus. Based on the literature and results of a renewable-energy focused computable general equilibrium model, we recommend that Egypt focus on the generation of wind power. At least part of the newly produced energy should be for the domestic market to ease the existing supply constraints and to avoid Dutch disease effects. In addition, to maximize the benefits of renewable energy sources, the renewable energy strategy should be accompanied by a reduction of energy subsidies. Finally, lessons from other countries suggest that sound institutions; appropriate, clear and lasting regulations; careful technology transfer; and cross-ministerial coordination are important for success.

Suggested Citation

  • Perrihan Al-Riffai & Julian Blohmke & Clemens Breisinger & Manfred Wiebelt, 2014. "Harnessing the Sun and Wind for Economic Development? An Economy-Wide Assessment for Egypt," Working Papers 851, Economic Research Forum, revised Oct 2014.
    • Handle: RePEc:erg:wpaper:851
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    References listed on IDEAS

    as
    1. Calzadilla, Alvaro & Wiebelt, Manfred & Blohmke, Julian & Klepper, Gernot, 2014. "Desert Power 2050: Regional and sectoral impacts of renewable electricity production in Europe, the Middle East and North Africa," Conference papers 332448, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Haller, Markus & Ludig, Sylvie & Bauer, Nico, 2012. "Decarbonization scenarios for the EU and MENA power system: Considering spatial distribution and short term dynamics of renewable generation," Energy Policy, Elsevier, vol. 47(C), pages 282-290.
    3. Vidican, Georgeta, 2012. "Building domestic capabilities in renewable energy: a case study of Egypt," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 66, number 66, July.
    4. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9780521182935, October.
    5. Jakob, Michael & Haller, Markus & Marschinski, Robert, 2012. "Will history repeat itself? Economic convergence and convergence in energy use patterns," Energy Economics, Elsevier, vol. 34(1), pages 95-104.
    6. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9781107005198, October.
    7. Popp, David & Hascic, Ivan & Medhi, Neelakshi, 2011. "Technology and the diffusion of renewable energy," Energy Economics, Elsevier, vol. 33(4), pages 648-662, July.
    8. Massetti, Emanuele & Ricci, Elena Claire, 2013. "An assessment of the optimal timing and size of investments in concentrated solar power," Energy Economics, Elsevier, vol. 38(C), pages 186-203.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Imane Helmy & Christian Richter & Khalid Siddig & Hebatallah Ghoneim, 2018. "A Comparison of the Economics Impacts of Conditional and Unconditional Cash Transfers in Egypt," Working Papers 50, The German University in Cairo, Faculty of Management Technology.
    2. Mondal, Md. Alam Hossain & Ringler, Claudia & Al-Riffai, Perrihan & Eldidi, Hagar & Breisinger, Clemens & Wiebelt, Manfred, 2019. "Long-term optimization of Egypt’s power sector: Policy implications," Energy, Elsevier, vol. 166(C), pages 1063-1073.

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    More about this item

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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