The impact of renewable energies and electric market liberalization on electrical prices in the European Union. An econometric panel data model

Resumen

A controversial debate has arisen about the effectson household electricity prices of electricity generation fromRenewable Energy Sources and regulatory reforms in theEuropean Union Electricity Market. In this paper we proposeto use panel data models with the aim of explaining thehousehold electricity prices as a function of several economicvariables related to renewable energy sources and electricitymarket regulation. More specifically we use a panel data setprovided by Eurostat and covering 27 European Unioncountries during the period 1998–2009. Our results suggestthat electricity prices increase with the deployment ofElectricity from Renewable Energy Sources.