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Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios

Year 2014, Volume: 4 Issue: 4, 1108 - 1118, 01.12.2014

Abstract

Egypt is considering initiatives to deploy renewable energies, such as solar and wind; these would be financed through national and international public funds and private investment. Direct and induced impacts of investments could be significant drivers of socioeconomic development in Egypt, which currently has high level of poverty and unemployment plus volatile economic growth due to recent political upheaval. The initiatives would have two goals: i) export of electricity from renewable sources to Europe; and ii) generation of electricity to satisfy Egypt's growing energy needs. We thus posed two research questions: i) what are possible effects of investment in concentrating solar power (CSP), at a scale that would attract national and international policy incentives; and ii) what are effects of investment in CSP compared with the effects of a) the business-as-usual scenario, b) the DESERTEC investment plan, which foresees a large share of electricity being exported to Europe, and c) the national energy targets, under which CSP will be deployed to satisfy local energy demand. Our method is Social Accounting Matrix (SAM) of Egypt and the Leontief Input-Output model. Our results show that even though impacts from investments foreseen by the DESERTEC scenario will be highest in terms of GDP, output will be higher in the case of the scenario aiming to secure local demand of electricity from CSP. However, under this scenario, the income multiplier impacts will be the lowest, compared with the DESERTEC and business-as-usual scenarios.

References

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  • N, Komendantova, A. Patt, and K. Williges,. “Solar power investment in North Africa: Reducing Perceived risks”, Renewable and Sustainable Energy Reviews, 15 (9), pp. 4829-4835, 2011
  • N. Komendantova, A. Patt, L. Barra, and A. Battaglini, “Perception of risks in renewable energy projects: The case of concentrated solar power in North Africa”, Energy Policy, 40, pp.103-109, 2012
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  • N. Komendantova and A. Patt, “Employment under vertical and horizontal transfer of concentrated solar power technology to North African countries”. Renewable and Sustainable Energy Reviews (2014), pp. 1192-1201, 2014
Year 2014, Volume: 4 Issue: 4, 1108 - 1118, 01.12.2014

Abstract

References

  • D. Abdou, Z. and Zeinab, “The Egyptian Revolution and Post Socio-Economic Impact”, Topics in Middle Eastern and African Economies, vol. 15, no. 1, pp. 588-595, 2013
  • CAPMAS, Bulletin of Labor Force, Central Agency for Public Mobilization and Statistics, 2013.
  • Financial Statistics and Fiscal Data. The Egyptian Ministry of Finance Statistics, 2013.
  • IMF, Growth Resuming, Dangers Remain, World Economic and Financial Surveys, World Economic Outlook, 2012.
  • UNEP, Global Trends in Renewable Energy Investments, United Nations Environment Program, 2013.
  • IEA/OECD, World Energy Outlook 2012. International Energy Agency, 2013.
  • REEEP, Annual Report 2013, Renewable Energy and Energy Efficiency Partnership, 2013.
  • N, Komendantova, A. Patt, and K. Williges,. “Solar power investment in North Africa: Reducing Perceived risks”, Renewable and Sustainable Energy Reviews, 15 (9), pp. 4829-4835, 2011
  • N. Komendantova, A. Patt, L. Barra, and A. Battaglini, “Perception of risks in renewable energy projects: The case of concentrated solar power in North Africa”, Energy Policy, 40, pp.103-109, 2012
  • J. Ondraczek, N. Komendantova, A. Patt. “WACC the Dog: The effect of financing costs on the levelized cost of solar PV power”. Renewable Energy, Volume 75, March 2015, Pages 888-898.
  • IRENA, Renewable Power Generation Costs in 2012: IRENA An Renewable Energy Agency, 2013. Report. International
  • P.,H. Sudin, “Struggling between resources-based and sustainable development schemes—an analysis”, vol. 39, Issue 8, pp. 4431–4444, 2011.
  • H.Chenery, and T. Watanabe, T., “International Comparisons of the Structure of Production”, Econometrica, 26 (4), October, pp.487-521, 2011
  • P. Dasgupta, P. and D. Chakraborty. “ The Structure of the Indian Economy”, 15th International Input-Output Conference, Beijing, China, P.R.,session I.1.6, June 27-July 1, 2005
  • N. Komendantova and A. Patt, “Employment under vertical and horizontal transfer of concentrated solar power technology to North African countries”. Renewable and Sustainable Energy Reviews (2014), pp. 1192-1201, 2014
There are 15 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Noran Mohamed Farag This is me

Nadejda Komendantova This is me

Publication Date December 1, 2014
Published in Issue Year 2014 Volume: 4 Issue: 4

Cite

APA Farag, N. M., & Komendantova, N. (2014). Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios. International Journal Of Renewable Energy Research, 4(4), 1108-1118.
AMA Farag NM, Komendantova N. Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios. International Journal Of Renewable Energy Research. December 2014;4(4):1108-1118.
Chicago Farag, Noran Mohamed, and Nadejda Komendantova. “Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios”. International Journal Of Renewable Energy Research 4, no. 4 (December 2014): 1108-18.
EndNote Farag NM, Komendantova N (December 1, 2014) Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios. International Journal Of Renewable Energy Research 4 4 1108–1118.
IEEE N. M. Farag and N. Komendantova, “Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios”, International Journal Of Renewable Energy Research, vol. 4, no. 4, pp. 1108–1118, 2014.
ISNAD Farag, Noran Mohamed - Komendantova, Nadejda. “Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios”. International Journal Of Renewable Energy Research 4/4 (December 2014), 1108-1118.
JAMA Farag NM, Komendantova N. Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios. International Journal Of Renewable Energy Research. 2014;4:1108–1118.
MLA Farag, Noran Mohamed and Nadejda Komendantova. “Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios”. International Journal Of Renewable Energy Research, vol. 4, no. 4, 2014, pp. 1108-1.
Vancouver Farag NM, Komendantova N. Multiplier Effects on Socioeconomic Development from Investment in Renewable Energy Projects in Egypt: DESERTEC Versus Energy for Local Consumption Scenarios. International Journal Of Renewable Energy Research. 2014;4(4):1108-1.