Publication:
Mitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbean

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dc.contributor.authorYépez-Garcia, Rigoberto Ariel
dc.contributor.authorDana, Julie
dc.date.accessioned2012-06-29T21:07:05Z
dc.date.available2012-06-29T21:07:05Z
dc.date.issued2012
dc.description.abstractCountries 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.en
dc.identifierhttp://documents.worldbank.org/curated/en/2012/06/16380626/mitigating-vulnerability-high-volatile-oil-prices-power-sector-experience-latin-america-caribbean
dc.identifier.doi10.1596/978-0-8213-9577-6
dc.identifier.isbn978-0-8213-9577-6
dc.identifier.urihttps://hdl.handle.net/10986/9341
dc.languageEnglish
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesDirections in Development : Energy and Mining
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectAGGREGATE DEMAND
dc.subjectAPPROACH
dc.subjectAVAILABILITY
dc.subjectAVERAGE PRICE
dc.subjectBALANCE
dc.subjectBALANCE OF PAYMENTS
dc.subjectBARRELS OF OIL
dc.subjectBARRIERS TO ENERGY EFFICIENCY
dc.subjectBIOMASS
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL GOODS
dc.subjectCAPITAL MARKETS
dc.subjectCLEANER ENERGY
dc.subjectCLIMATE
dc.subjectCLIMATE CHANGE
dc.subjectCOAL
dc.subjectCOAL GENERATION
dc.subjectCOMBUSTION
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVENESS
dc.subjectCOMPLEX TASK
dc.subjectCONSUMER PRICE
dc.subjectCONSUMER PRICE INDEX
dc.subjectCONSUMER PRICES
dc.subjectCONVENTIONAL ENERGY
dc.subjectCONVENTIONAL FUELS
dc.subjectCOST INCREASES
dc.subjectCOST OF ELECTRICITY
dc.subjectCOST OF ELECTRICITY PRODUCTION
dc.subjectCPI
dc.subjectCRUDE OIL
dc.subjectDEBT
dc.subjectDELIVERY MECHANISM
dc.subjectDEMAND ELASTICITY
dc.subjectDEMAND MANAGEMENT
dc.subjectDIESEL
dc.subjectDIESEL FUEL
dc.subjectDISPOSABLE INCOME
dc.subjectDISTRIBUTION OF COSTS
dc.subjectDOMESTIC OIL
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC BENEFITS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC DIVERSIFICATION
dc.subjectECONOMIC EFFECTS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC IMPACTS
dc.subjectECONOMIC INDICATORS
dc.subjectECONOMIC UNCERTAINTY
dc.subjectECONOMICS
dc.subjectECONOMIES OF SCALE
dc.subjectEFFICIENCY GAINS
dc.subjectEFFICIENCY IMPROVEMENTS
dc.subjectELECTRIC POWER
dc.subjectELECTRIC UTILITIES
dc.subjectELECTRIC UTILITY
dc.subjectELECTRICITY
dc.subjectELECTRICITY CONSUMPTION
dc.subjectELECTRICITY GENERATION
dc.subjectELECTRICITY GENERATION MIX
dc.subjectELECTRICITY PRICES
dc.subjectELECTRICITY PRICING
dc.subjectELECTRICITY PRODUCTION
dc.subjectELECTRICITY RATES
dc.subjectELECTRIFICATION
dc.subjectEMISSIONS
dc.subjectENERGY COSTS
dc.subjectENERGY DEMAND
dc.subjectENERGY ECONOMICS
dc.subjectENERGY EFFICIENCY
dc.subjectENERGY EXPENDITURES
dc.subjectENERGY GENERATION
dc.subjectENERGY INFORMATION ADMINISTRATION
dc.subjectENERGY INTENSITY
dc.subjectENERGY MANAGEMENT
dc.subjectENERGY MARKETS
dc.subjectENERGY MIX
dc.subjectENERGY NEEDS
dc.subjectENERGY PLANNERS
dc.subjectENERGY PLANNING
dc.subjectENERGY PORTFOLIO
dc.subjectENERGY PRICE
dc.subjectENERGY PRICING
dc.subjectENERGY RESOURCES
dc.subjectENERGY SAVINGS
dc.subjectENERGY SECURITY
dc.subjectENERGY SOURCES
dc.subjectENERGY SUBSIDIES
dc.subjectENERGY SYSTEM
dc.subjectENERGY USE
dc.subjectENVIRONMENTAL
dc.subjectEXCHANGE RATE
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPLOITATION
dc.subjectEXTREME SCENARIOS
dc.subjectFEASIBILITY
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL RISK
dc.subjectFINANCIAL RISKS
dc.subjectFOREIGN EXCHANGE
dc.subjectFOSSIL
dc.subjectFOSSIL FUELS
dc.subjectFUEL
dc.subjectFUEL COST
dc.subjectFUEL COSTS
dc.subjectFUEL OIL
dc.subjectFUEL PRICES
dc.subjectFUEL REQUIREMENTS
dc.subjectFUELS
dc.subjectGAS TURBINE
dc.subjectGASIFICATION
dc.subjectGENERATING CAPACITY
dc.subjectGREENHOUSE GAS
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectHEAVY FUEL OIL
dc.subjectHIGHER ENERGY PRICES
dc.subjectHYDROCARBONS
dc.subjectHYDROELECTRIC POWER
dc.subjectHYDROPOWER
dc.subjectIMPROVING ENERGY EFFICIENCY
dc.subjectINCOME HOUSEHOLDS
dc.subjectINFLATION
dc.subjectINTERNATIONAL COMPETITIVENESS
dc.subjectINVESTMENT DECISIONS
dc.subjectISLAND ECONOMIES
dc.subjectKILOWATT HOUR
dc.subjectLNG
dc.subjectMARKET INTEGRATION
dc.subjectMARKET PRICE
dc.subjectMARKET PRICES
dc.subjectMARKET STRUCTURE
dc.subjectMINES
dc.subjectMONETARY FUND
dc.subjectMONETARY POLICY
dc.subjectMONOPOLIES
dc.subjectMONOPOLY
dc.subjectNATURAL GAS
dc.subjectNATURAL GAS PRICES
dc.subjectNATURAL-GAS
dc.subjectNET OIL
dc.subjectOIL
dc.subjectOIL CONSUMPTION
dc.subjectOIL EQUIVALENT
dc.subjectOIL EXPORTER
dc.subjectOIL EXPORTERS
dc.subjectOIL EXPORTS
dc.subjectOIL IMPORTS
dc.subjectOIL PRICE
dc.subjectOIL PRICES
dc.subjectOIL PRODUCTION
dc.subjectOIL PRODUCTS
dc.subjectPETROLEUM
dc.subjectPETROLEUM GAS
dc.subjectPETROLEUM PRODUCTS
dc.subjectPOLICY DECISIONS
dc.subjectPOLICY INSTRUMENTS
dc.subjectPOLICY MAKERS
dc.subjectPORTFOLIO
dc.subjectPOWER
dc.subjectPOWER COMPANY
dc.subjectPOWER GENERATION
dc.subjectPOWER GENERATION CAPACITY
dc.subjectPOWER MIX
dc.subjectPOWER SECTOR
dc.subjectPOWER SECTORS
dc.subjectPOWER SYSTEM
dc.subjectPOWER SYSTEM PLANNING
dc.subjectPOWER SYSTEMS
dc.subjectPRICE CHANGES
dc.subjectPRICE CONTROLS
dc.subjectPRICE FLUCTUATIONS
dc.subjectPRICE INCREASE
dc.subjectPRICE INCREASES
dc.subjectPRICE LEVEL
dc.subjectPRICE OF ELECTRICITY
dc.subjectPRICE OF OIL
dc.subjectPRICE RISK
dc.subjectPRICE SPIKES
dc.subjectPRICE STABILIZATION
dc.subjectPRICE STRUCTURE
dc.subjectPRICE TREND
dc.subjectPRICE UNCERTAINTY
dc.subjectPRICE VOLATILITY
dc.subjectPRICING MECHANISM
dc.subjectPRICING MECHANISMS
dc.subjectPRICING POLICIES
dc.subjectPRICING POLICY
dc.subjectPRICING REFORMS
dc.subjectPRIMARY ENERGY
dc.subjectPRIMARY ENERGY SUPPLY
dc.subjectPRODUCERS
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTIVE RESOURCES
dc.subjectPUBLIC UTILITIES
dc.subjectPURCHASING
dc.subjectPURCHASING POWER
dc.subjectREAL WAGES
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY POLICIES
dc.subjectRENEWABLE ENERGY
dc.subjectRENEWABLE RESOURCES
dc.subjectRESERVE REQUIREMENTS
dc.subjectRISK MANAGEMENT
dc.subjectSALES
dc.subjectSCENARIOS
dc.subjectSOLAR ENERGY
dc.subjectSPOT PRICE
dc.subjectSUBSTITUTE
dc.subjectSUGARCANE
dc.subjectSUPPLY CHAIN
dc.subjectSUPPLY SIDE
dc.subjectSURPLUS
dc.subjectSUSTAINABLE DEVELOPMENT
dc.subjectSUSTAINABLE ENERGY
dc.subjectTARIFF STRUCTURE
dc.subjectTERMS OF TRADE
dc.subjectTHERMAL POWER
dc.subjectTHERMAL UNIT
dc.subjectTOTAL CONSUMPTION
dc.subjectTRADITIONAL FUEL
dc.subjectTRANSMISSION LINE
dc.subjectTRANSMISSION SYSTEM
dc.subjectUNCERTAINTIES
dc.subjectUTILITIES
dc.subjectUTILITY COMPANY
dc.subjectVOLATILE PRICES
dc.subjectVULNERABILITY INDICATORS
dc.subjectWHOLESALE PRICE
dc.subjectWIND
dc.subjectWIND ENERGY
dc.titleMitigating Vulnerability to High and Volatile Oil Prices : Power Sector Experience in Latin America and the Caribbeanen
dspace.entity.typePublication
okr.crosscuttingsolutionareaClimate Change
okr.crossref.titleMitigating Vulnerability to High and Volatile Oil Prices
okr.date.disclosure2012-06-14
okr.date.doiregistration2025-04-15T12:05:40.333695Z
okr.doctypePublications & Research::Publication
okr.doctypePublications & Research::Publication
okr.docurlhttp://documents.worldbank.org/curated/en/2012/06/16380626/mitigating-vulnerability-high-volatile-oil-prices-power-sector-experience-latin-america-caribbean
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.globalpracticeEnergy and Extractives
okr.guid486571468224404351
okr.identifier.doi10.1596/978-0-8213-9577-6
okr.identifier.externaldocumentum000386194_20120615041548
okr.identifier.internaldocumentum16380626
okr.identifier.report69944
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/06/15/000386194_20120615041548/Rendered/PDF/699440PUB0Publ067869B09780821395776.pdfen
okr.region.administrativeLatin America & Caribbean
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicMacroeconomics and Economic Growth::Climate Change Economics
okr.topicEnergy::Energy and Environment
okr.topicEnergy::Energy Production and Transportation
okr.topicEnvironmental Economics and Policies
okr.topicEnvironment
okr.unitBanking & Debt Management (BDM)
okr.volume1 of 1
relation.isSeriesOfPublication706db16a-e556-46f0-8283-1b4a4b88645c
relation.isSeriesOfPublication.latestForDiscovery706db16a-e556-46f0-8283-1b4a4b88645c
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