The Impact of International Trade on Electric Loads in Mexico

15 Pages Posted: 8 Mar 2017

See all articles by Marc H. Vatter

Marc H. Vatter

Marc H. Vatter, Ph.D.; Elevation Direct; Economic Insight, Inc.; Brown University Dept. of Economics

Daniel Suurkask

Birch Energy Economics, LLC

Date Written: January 24, 2017

Abstract

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

Vatter, Marc H. and Suurkask, Daniel, The Impact of International Trade on Electric Loads in Mexico (January 24, 2017). USAEE Working Paper No. 17-301. Available at SSRN: https://ssrn.com/abstract=2928817 or http://dx.doi.org/10.2139/ssrn.2928817

Marc H. Vatter (Contact Author)

Marc H. Vatter, Ph.D. ( email )

9 Underhill Street
Nashua, NH 03060-4060
United States
603.402.3433 (Phone)

HOME PAGE: http://appliedecon.net

Elevation Direct ( email )

3753 Howard Hughes Pkwy
Las Vegas, NV 89169
United States
208-946-9814 (Phone)

HOME PAGE: http://www.elevationdirect.com/

Economic Insight, Inc. ( email )

9 Underhill Street
Nashua, NH 03060-4060
United States
603.402.3433 (Phone)

HOME PAGE: http://appliedecon.net

Brown University Dept. of Economics ( email )

64 Waterman Street
Providence, RI 02912
United States
401-863-3836 (Phone)

HOME PAGE: http://www.brown.edu/Departments/Economics/

Daniel Suurkask

Birch Energy Economics, LLC

13670 West Prairie Avenue
Post Falls, ID 83854
United States

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