Mitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbean
Countries heavily dependent on imported oil to power a significant portion of their electricity generation are especially vulnerable to high and volatile oil prices. In net oil-importing countries worldwide, high and volatile oil prices ripple through the power sector to numerous segments of the eco...
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| Format: | Publication |
| Language: | English |
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Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/06/16380626/mitigating-vulnerability-high-volatile-oil-prices-power-sector-experience-latin-america-caribbean http://hdl.handle.net/10986/9341 |
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okr-10986-9341 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
AGGREGATE DEMAND APPROACH AVAILABILITY AVERAGE PRICE BALANCE BALANCE OF PAYMENTS BARRELS OF OIL BARRIERS TO ENERGY EFFICIENCY BIOMASS CAPITAL FORMATION CAPITAL GOODS CAPITAL MARKETS CLEANER ENERGY CLIMATE CLIMATE CHANGE COAL COAL GENERATION COMBUSTION COMPARATIVE ADVANTAGE COMPETITIVENESS COMPLEX TASK CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CONVENTIONAL ENERGY CONVENTIONAL FUELS COST INCREASES COST OF ELECTRICITY COST OF ELECTRICITY PRODUCTION CPI CRUDE OIL DEBT DELIVERY MECHANISM DEMAND ELASTICITY DEMAND MANAGEMENT DIESEL DIESEL FUEL DISPOSABLE INCOME DISTRIBUTION OF COSTS DOMESTIC OIL ECONOMIC ACTIVITY ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC DIVERSIFICATION ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC IMPACTS ECONOMIC INDICATORS ECONOMIC UNCERTAINTY ECONOMICS ECONOMIES OF SCALE EFFICIENCY GAINS EFFICIENCY IMPROVEMENTS ELECTRIC POWER ELECTRIC UTILITIES ELECTRIC UTILITY ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY GENERATION ELECTRICITY GENERATION MIX ELECTRICITY PRICES ELECTRICITY PRICING ELECTRICITY PRODUCTION ELECTRICITY RATES ELECTRIFICATION EMISSIONS ENERGY COSTS ENERGY DEMAND ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY EXPENDITURES ENERGY GENERATION ENERGY INFORMATION ADMINISTRATION ENERGY INTENSITY ENERGY MANAGEMENT ENERGY MARKETS ENERGY MIX ENERGY NEEDS ENERGY PLANNERS ENERGY PLANNING ENERGY PORTFOLIO ENERGY PRICE ENERGY PRICING ENERGY RESOURCES ENERGY SAVINGS ENERGY SECURITY ENERGY SOURCES ENERGY SUBSIDIES ENERGY SYSTEM ENERGY USE ENVIRONMENTAL EXCHANGE RATE EXPENDITURE EXPENDITURES EXPLOITATION EXTREME SCENARIOS FEASIBILITY FINANCIAL INSTRUMENTS FINANCIAL RISK FINANCIAL RISKS FOREIGN EXCHANGE FOSSIL FOSSIL FUELS FUEL FUEL COST FUEL COSTS FUEL OIL FUEL PRICES FUEL REQUIREMENTS FUELS GAS TURBINE GASIFICATION GENERATING CAPACITY GREENHOUSE GAS GROSS DOMESTIC PRODUCT HEAVY FUEL OIL HIGHER ENERGY PRICES HYDROCARBONS HYDROELECTRIC POWER HYDROPOWER IMPROVING ENERGY EFFICIENCY INCOME HOUSEHOLDS INFLATION INTERNATIONAL COMPETITIVENESS INVESTMENT DECISIONS ISLAND ECONOMIES KILOWATT HOUR LNG MARKET INTEGRATION MARKET PRICE MARKET PRICES MARKET STRUCTURE MINES MONETARY FUND MONETARY POLICY MONOPOLIES MONOPOLY NATURAL GAS NATURAL GAS PRICES NATURAL-GAS NET OIL OIL OIL CONSUMPTION OIL EQUIVALENT OIL EXPORTER OIL EXPORTERS OIL EXPORTS OIL IMPORTS OIL PRICE OIL PRICES OIL PRODUCTION OIL PRODUCTS PETROLEUM PETROLEUM GAS PETROLEUM PRODUCTS POLICY DECISIONS POLICY INSTRUMENTS POLICY MAKERS PORTFOLIO POWER POWER COMPANY POWER GENERATION POWER GENERATION CAPACITY POWER MIX POWER SECTOR POWER SECTORS POWER SYSTEM POWER SYSTEM PLANNING POWER SYSTEMS PRICE CHANGES PRICE CONTROLS PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE LEVEL PRICE OF ELECTRICITY PRICE OF OIL PRICE RISK PRICE SPIKES PRICE STABILIZATION PRICE STRUCTURE PRICE TREND PRICE UNCERTAINTY PRICE VOLATILITY PRICING MECHANISM PRICING MECHANISMS PRICING POLICIES PRICING POLICY PRICING REFORMS PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRODUCERS PRODUCTION COSTS PRODUCTIVE RESOURCES PUBLIC UTILITIES PURCHASING PURCHASING POWER REAL WAGES REGULATORY FRAMEWORK REGULATORY POLICIES RENEWABLE ENERGY RENEWABLE RESOURCES RESERVE REQUIREMENTS RISK MANAGEMENT SALES SCENARIOS SOLAR ENERGY SPOT PRICE SUBSTITUTE SUGARCANE SUPPLY CHAIN SUPPLY SIDE SURPLUS SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY TARIFF STRUCTURE TERMS OF TRADE THERMAL POWER THERMAL UNIT TOTAL CONSUMPTION TRADITIONAL FUEL TRANSMISSION LINE TRANSMISSION SYSTEM UNCERTAINTIES UTILITIES UTILITY COMPANY VOLATILE PRICES VULNERABILITY INDICATORS WHOLESALE PRICE WIND WIND ENERGY |
| spellingShingle |
AGGREGATE DEMAND APPROACH AVAILABILITY AVERAGE PRICE BALANCE BALANCE OF PAYMENTS BARRELS OF OIL BARRIERS TO ENERGY EFFICIENCY BIOMASS CAPITAL FORMATION CAPITAL GOODS CAPITAL MARKETS CLEANER ENERGY CLIMATE CLIMATE CHANGE COAL COAL GENERATION COMBUSTION COMPARATIVE ADVANTAGE COMPETITIVENESS COMPLEX TASK CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CONVENTIONAL ENERGY CONVENTIONAL FUELS COST INCREASES COST OF ELECTRICITY COST OF ELECTRICITY PRODUCTION CPI CRUDE OIL DEBT DELIVERY MECHANISM DEMAND ELASTICITY DEMAND MANAGEMENT DIESEL DIESEL FUEL DISPOSABLE INCOME DISTRIBUTION OF COSTS DOMESTIC OIL ECONOMIC ACTIVITY ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC DIVERSIFICATION ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC IMPACTS ECONOMIC INDICATORS ECONOMIC UNCERTAINTY ECONOMICS ECONOMIES OF SCALE EFFICIENCY GAINS EFFICIENCY IMPROVEMENTS ELECTRIC POWER ELECTRIC UTILITIES ELECTRIC UTILITY ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY GENERATION ELECTRICITY GENERATION MIX ELECTRICITY PRICES ELECTRICITY PRICING ELECTRICITY PRODUCTION ELECTRICITY RATES ELECTRIFICATION EMISSIONS ENERGY COSTS ENERGY DEMAND ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY EXPENDITURES ENERGY GENERATION ENERGY INFORMATION ADMINISTRATION ENERGY INTENSITY ENERGY MANAGEMENT ENERGY MARKETS ENERGY MIX ENERGY NEEDS ENERGY PLANNERS ENERGY PLANNING ENERGY PORTFOLIO ENERGY PRICE ENERGY PRICING ENERGY RESOURCES ENERGY SAVINGS ENERGY SECURITY ENERGY SOURCES ENERGY SUBSIDIES ENERGY SYSTEM ENERGY USE ENVIRONMENTAL EXCHANGE RATE EXPENDITURE EXPENDITURES EXPLOITATION EXTREME SCENARIOS FEASIBILITY FINANCIAL INSTRUMENTS FINANCIAL RISK FINANCIAL RISKS FOREIGN EXCHANGE FOSSIL FOSSIL FUELS FUEL FUEL COST FUEL COSTS FUEL OIL FUEL PRICES FUEL REQUIREMENTS FUELS GAS TURBINE GASIFICATION GENERATING CAPACITY GREENHOUSE GAS GROSS DOMESTIC PRODUCT HEAVY FUEL OIL HIGHER ENERGY PRICES HYDROCARBONS HYDROELECTRIC POWER HYDROPOWER IMPROVING ENERGY EFFICIENCY INCOME HOUSEHOLDS INFLATION INTERNATIONAL COMPETITIVENESS INVESTMENT DECISIONS ISLAND ECONOMIES KILOWATT HOUR LNG MARKET INTEGRATION MARKET PRICE MARKET PRICES MARKET STRUCTURE MINES MONETARY FUND MONETARY POLICY MONOPOLIES MONOPOLY NATURAL GAS NATURAL GAS PRICES NATURAL-GAS NET OIL OIL OIL CONSUMPTION OIL EQUIVALENT OIL EXPORTER OIL EXPORTERS OIL EXPORTS OIL IMPORTS OIL PRICE OIL PRICES OIL PRODUCTION OIL PRODUCTS PETROLEUM PETROLEUM GAS PETROLEUM PRODUCTS POLICY DECISIONS POLICY INSTRUMENTS POLICY MAKERS PORTFOLIO POWER POWER COMPANY POWER GENERATION POWER GENERATION CAPACITY POWER MIX POWER SECTOR POWER SECTORS POWER SYSTEM POWER SYSTEM PLANNING POWER SYSTEMS PRICE CHANGES PRICE CONTROLS PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE LEVEL PRICE OF ELECTRICITY PRICE OF OIL PRICE RISK PRICE SPIKES PRICE STABILIZATION PRICE STRUCTURE PRICE TREND PRICE UNCERTAINTY PRICE VOLATILITY PRICING MECHANISM PRICING MECHANISMS PRICING POLICIES PRICING POLICY PRICING REFORMS PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRODUCERS PRODUCTION COSTS PRODUCTIVE RESOURCES PUBLIC UTILITIES PURCHASING PURCHASING POWER REAL WAGES REGULATORY FRAMEWORK REGULATORY POLICIES RENEWABLE ENERGY RENEWABLE RESOURCES RESERVE REQUIREMENTS RISK MANAGEMENT SALES SCENARIOS SOLAR ENERGY SPOT PRICE SUBSTITUTE SUGARCANE SUPPLY CHAIN SUPPLY SIDE SURPLUS SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY TARIFF STRUCTURE TERMS OF TRADE THERMAL POWER THERMAL UNIT TOTAL CONSUMPTION TRADITIONAL FUEL TRANSMISSION LINE TRANSMISSION SYSTEM UNCERTAINTIES UTILITIES UTILITY COMPANY VOLATILE PRICES VULNERABILITY INDICATORS WHOLESALE PRICE WIND WIND ENERGY Yépez-Garcia, Rigoberto Ariel Dana, Julie Mitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbean |
| geographic_facet |
Latin America & Caribbean |
| relation |
Directions in Development : Energy and Mining |
| description |
Countries heavily dependent on imported oil to power a significant portion of their electricity generation are especially vulnerable to high and volatile oil prices. In net oil-importing countries worldwide, high and volatile oil prices ripple through the power sector to numerous segments of the economy. As prices move up and down, so does the cost of electricity production, which has far-reaching effects on the economy, fiscal and trade balances, businesses, and household living standards. High and volatile oil prices affect economies at both a macro and micro level. The major direct effects at the macro level are a deteriorating trade balance, through a higher import bill, reflecting a worsening in terms of trade; and a weakening fiscal balance due to greater government transfers and subsidies to insulate movements in international energy markets. At the micro level, investment uncertainty results from the higher risk of engaging in new projects and associated development and sunk costs, which, in turn, affects policy decisions and economic growth. This study responds to the needs of policy makers and energy planners in oil-importing countries to better manage exposure to oil price risk. The study's objective is threefold. First, it analyzes the economic effects of higher and volatile prices on oil-importing countries, with emphasis on the power sector, using examples from Latin America and the Caribbean (LAC). Second, it proposes a menu of complementary options that can be applied over multiple time frames. Several structural measures are designed to reduce oil generation and consumption, while a range of financial instruments are suggested for managing price risk in the short term. Finally, it attempts to quantify some of the macroeconomic and microeconomic benefits that could accrue from implementing such options. |
| format |
Publications & Research :: Publication |
| author |
Yépez-Garcia, Rigoberto Ariel Dana, Julie |
| author_facet |
Yépez-Garcia, Rigoberto Ariel Dana, Julie |
| author_sort |
Yépez-Garcia, Rigoberto Ariel |
| title |
Mitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbean |
| title_short |
Mitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbean |
| title_full |
Mitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbean |
| title_fullStr |
Mitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbean |
| title_full_unstemmed |
Mitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbean |
| title_sort |
mitigating vulnerability to high and volatile oil prices : power sector experience in latin america and the caribbean |
| publisher |
Washington, DC: World Bank |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/06/16380626/mitigating-vulnerability-high-volatile-oil-prices-power-sector-experience-latin-america-caribbean http://hdl.handle.net/10986/9341 |
| _version_ |
1764409069413597184 |
| spelling |
okr-10986-93412021-04-23T14:02:44Z Mitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbean Yépez-Garcia, Rigoberto Ariel Dana, Julie AGGREGATE DEMAND APPROACH AVAILABILITY AVERAGE PRICE BALANCE BALANCE OF PAYMENTS BARRELS OF OIL BARRIERS TO ENERGY EFFICIENCY BIOMASS CAPITAL FORMATION CAPITAL GOODS CAPITAL MARKETS CLEANER ENERGY CLIMATE CLIMATE CHANGE COAL COAL GENERATION COMBUSTION COMPARATIVE ADVANTAGE COMPETITIVENESS COMPLEX TASK CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CONVENTIONAL ENERGY CONVENTIONAL FUELS COST INCREASES COST OF ELECTRICITY COST OF ELECTRICITY PRODUCTION CPI CRUDE OIL DEBT DELIVERY MECHANISM DEMAND ELASTICITY DEMAND MANAGEMENT DIESEL DIESEL FUEL DISPOSABLE INCOME DISTRIBUTION OF COSTS DOMESTIC OIL ECONOMIC ACTIVITY ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC DIVERSIFICATION ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC IMPACTS ECONOMIC INDICATORS ECONOMIC UNCERTAINTY ECONOMICS ECONOMIES OF SCALE EFFICIENCY GAINS EFFICIENCY IMPROVEMENTS ELECTRIC POWER ELECTRIC UTILITIES ELECTRIC UTILITY ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY GENERATION ELECTRICITY GENERATION MIX ELECTRICITY PRICES ELECTRICITY PRICING ELECTRICITY PRODUCTION ELECTRICITY RATES ELECTRIFICATION EMISSIONS ENERGY COSTS ENERGY DEMAND ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY EXPENDITURES ENERGY GENERATION ENERGY INFORMATION ADMINISTRATION ENERGY INTENSITY ENERGY MANAGEMENT ENERGY MARKETS ENERGY MIX ENERGY NEEDS ENERGY PLANNERS ENERGY PLANNING ENERGY PORTFOLIO ENERGY PRICE ENERGY PRICING ENERGY RESOURCES ENERGY SAVINGS ENERGY SECURITY ENERGY SOURCES ENERGY SUBSIDIES ENERGY SYSTEM ENERGY USE ENVIRONMENTAL EXCHANGE RATE EXPENDITURE EXPENDITURES EXPLOITATION EXTREME SCENARIOS FEASIBILITY FINANCIAL INSTRUMENTS FINANCIAL RISK FINANCIAL RISKS FOREIGN EXCHANGE FOSSIL FOSSIL FUELS FUEL FUEL COST FUEL COSTS FUEL OIL FUEL PRICES FUEL REQUIREMENTS FUELS GAS TURBINE GASIFICATION GENERATING CAPACITY GREENHOUSE GAS GROSS DOMESTIC PRODUCT HEAVY FUEL OIL HIGHER ENERGY PRICES HYDROCARBONS HYDROELECTRIC POWER HYDROPOWER IMPROVING ENERGY EFFICIENCY INCOME HOUSEHOLDS INFLATION INTERNATIONAL COMPETITIVENESS INVESTMENT DECISIONS ISLAND ECONOMIES KILOWATT HOUR LNG MARKET INTEGRATION MARKET PRICE MARKET PRICES MARKET STRUCTURE MINES MONETARY FUND MONETARY POLICY MONOPOLIES MONOPOLY NATURAL GAS NATURAL GAS PRICES NATURAL-GAS NET OIL OIL OIL CONSUMPTION OIL EQUIVALENT OIL EXPORTER OIL EXPORTERS OIL EXPORTS OIL IMPORTS OIL PRICE OIL PRICES OIL PRODUCTION OIL PRODUCTS PETROLEUM PETROLEUM GAS PETROLEUM PRODUCTS POLICY DECISIONS POLICY INSTRUMENTS POLICY MAKERS PORTFOLIO POWER POWER COMPANY POWER GENERATION POWER GENERATION CAPACITY POWER MIX POWER SECTOR POWER SECTORS POWER SYSTEM POWER SYSTEM PLANNING POWER SYSTEMS PRICE CHANGES PRICE CONTROLS PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE LEVEL PRICE OF ELECTRICITY PRICE OF OIL PRICE RISK PRICE SPIKES PRICE STABILIZATION PRICE STRUCTURE PRICE TREND PRICE UNCERTAINTY PRICE VOLATILITY PRICING MECHANISM PRICING MECHANISMS PRICING POLICIES PRICING POLICY PRICING REFORMS PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRODUCERS PRODUCTION COSTS PRODUCTIVE RESOURCES PUBLIC UTILITIES PURCHASING PURCHASING POWER REAL WAGES REGULATORY FRAMEWORK REGULATORY POLICIES RENEWABLE ENERGY RENEWABLE RESOURCES RESERVE REQUIREMENTS RISK MANAGEMENT SALES SCENARIOS SOLAR ENERGY SPOT PRICE SUBSTITUTE SUGARCANE SUPPLY CHAIN SUPPLY SIDE SURPLUS SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY TARIFF STRUCTURE TERMS OF TRADE THERMAL POWER THERMAL UNIT TOTAL CONSUMPTION TRADITIONAL FUEL TRANSMISSION LINE TRANSMISSION SYSTEM UNCERTAINTIES UTILITIES UTILITY COMPANY VOLATILE PRICES VULNERABILITY INDICATORS WHOLESALE PRICE WIND WIND ENERGY Countries heavily dependent on imported oil to power a significant portion of their electricity generation are especially vulnerable to high and volatile oil prices. In net oil-importing countries worldwide, high and volatile oil prices ripple through the power sector to numerous segments of the economy. As prices move up and down, so does the cost of electricity production, which has far-reaching effects on the economy, fiscal and trade balances, businesses, and household living standards. High and volatile oil prices affect economies at both a macro and micro level. The major direct effects at the macro level are a deteriorating trade balance, through a higher import bill, reflecting a worsening in terms of trade; and a weakening fiscal balance due to greater government transfers and subsidies to insulate movements in international energy markets. At the micro level, investment uncertainty results from the higher risk of engaging in new projects and associated development and sunk costs, which, in turn, affects policy decisions and economic growth. This study responds to the needs of policy makers and energy planners in oil-importing countries to better manage exposure to oil price risk. The study's objective is threefold. First, it analyzes the economic effects of higher and volatile prices on oil-importing countries, with emphasis on the power sector, using examples from Latin America and the Caribbean (LAC). Second, it proposes a menu of complementary options that can be applied over multiple time frames. Several structural measures are designed to reduce oil generation and consumption, while a range of financial instruments are suggested for managing price risk in the short term. Finally, it attempts to quantify some of the macroeconomic and microeconomic benefits that could accrue from implementing such options. 2012-06-29T21:07:05Z 2012-06-29T21:07:05Z 2012 http://documents.worldbank.org/curated/en/2012/06/16380626/mitigating-vulnerability-high-volatile-oil-prices-power-sector-experience-latin-america-caribbean 978-0-8213-9577-6 http://hdl.handle.net/10986/9341 English Directions in Development : Energy and Mining CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication Latin America & Caribbean |