The Impact of International Trade on Electric Loads in Mexico
15 Pages Posted: 8 Mar 2017
Date Written: January 24, 2017
We estimate effects relevant to a possible shift in U.S. trade policy on electric loads in Mexico. We find exports to be a highly significant predictor of energy loads and a significant predictor of peak loads in models that do and do not include GDP and a trend toward greater efficiency in the use of electricity. These results are consistent with trade impacting load through high load factor, industrial customers. We conclude that, if a shift in trade policy toward Mexico is seen as a realistic possibility, it would be worthwhile to analyze its impact on loads, especially energy loads, in scenarios.
Keywords: Trade; Electricity; Mexico
JEL Classification: F14; Q47
Suggested Citation: Suggested Citation