Assessing the Impact of Trade Barriers on Energy Use in Turbulent Times: Current Conditions and Future Outlook for Greece
This paper develops a multi-sector computable general equilibrium (CGE) model with specific features for Greece and the non-EU Rest of the World (RoW). The novelty of this work stems from the lack of energy-focused CGE models for Greece in the current literature. The study’s objective is to determin...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-08-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/16/15/5806 |
| _version_ | 1797586808126570496 |
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| author | Gerassimos Bertsatos Nicholas Tsounis |
| author_facet | Gerassimos Bertsatos Nicholas Tsounis |
| author_sort | Gerassimos Bertsatos |
| collection | DOAJ |
| description | This paper develops a multi-sector computable general equilibrium (CGE) model with specific features for Greece and the non-EU Rest of the World (RoW). The novelty of this work stems from the lack of energy-focused CGE models for Greece in the current literature. The study’s objective is to determine how the Greek economy would react if a 30% import tariff and a quota of 67% on energy imports and 35% on remaining imports were implemented. Furthermore, if quotas and tariffs are in force, the Greek economy will initiate countermeasures by increasing investment in renewable energies through substitution and a 35% subsidy. To quantify this, the 2015 Input-Output (I-O) table for Greece and the non-EU RoW was used. To offer a better understanding, the 36 production sectors have been divided into Agriculture, Energy, Manufacturing, and Services. The quota scenario resulted in a reduction in all sectors in domestic production in terms of output and domestic uses, with some sectors experiencing around a 30% reduction. Renewable energy investments, on the other hand, have proven to be effective for domestic production, increasing output and domestic uses by (6.561%) and (7.886%), respectively. In terms of import tariffs, prices have increased, resulting in a significant decrease in household consumption that exceeds 30% in several sectors. Finally, policy recommendations for addressing these trade barriers and Greece’s renewable energy opportunities are proposed. |
| first_indexed | 2024-03-11T00:27:22Z |
| format | Article |
| id | doaj.art-66fa686ab164451fbc570e5de3fc4321 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-11T00:27:22Z |
| publishDate | 2023-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-66fa686ab164451fbc570e5de3fc43212023-11-18T22:53:04ZengMDPI AGEnergies1996-10732023-08-011615580610.3390/en16155806Assessing the Impact of Trade Barriers on Energy Use in Turbulent Times: Current Conditions and Future Outlook for GreeceGerassimos Bertsatos0Nicholas Tsounis1Laboratory of Applied Economics, Department of Economics, University of Western Macedonia, 521 00 Kastoria, GreeceLaboratory of Applied Economics, Department of Economics, University of Western Macedonia, 521 00 Kastoria, GreeceThis paper develops a multi-sector computable general equilibrium (CGE) model with specific features for Greece and the non-EU Rest of the World (RoW). The novelty of this work stems from the lack of energy-focused CGE models for Greece in the current literature. The study’s objective is to determine how the Greek economy would react if a 30% import tariff and a quota of 67% on energy imports and 35% on remaining imports were implemented. Furthermore, if quotas and tariffs are in force, the Greek economy will initiate countermeasures by increasing investment in renewable energies through substitution and a 35% subsidy. To quantify this, the 2015 Input-Output (I-O) table for Greece and the non-EU RoW was used. To offer a better understanding, the 36 production sectors have been divided into Agriculture, Energy, Manufacturing, and Services. The quota scenario resulted in a reduction in all sectors in domestic production in terms of output and domestic uses, with some sectors experiencing around a 30% reduction. Renewable energy investments, on the other hand, have proven to be effective for domestic production, increasing output and domestic uses by (6.561%) and (7.886%), respectively. In terms of import tariffs, prices have increased, resulting in a significant decrease in household consumption that exceeds 30% in several sectors. Finally, policy recommendations for addressing these trade barriers and Greece’s renewable energy opportunities are proposed.https://www.mdpi.com/1996-1073/16/15/5806Greecenon-EU RoWCGE modelInput-Output tableCES functionelasticities of substitution |
| spellingShingle | Gerassimos Bertsatos Nicholas Tsounis Assessing the Impact of Trade Barriers on Energy Use in Turbulent Times: Current Conditions and Future Outlook for Greece Energies Greece non-EU RoW CGE model Input-Output table CES function elasticities of substitution |
| title | Assessing the Impact of Trade Barriers on Energy Use in Turbulent Times: Current Conditions and Future Outlook for Greece |
| title_full | Assessing the Impact of Trade Barriers on Energy Use in Turbulent Times: Current Conditions and Future Outlook for Greece |
| title_fullStr | Assessing the Impact of Trade Barriers on Energy Use in Turbulent Times: Current Conditions and Future Outlook for Greece |
| title_full_unstemmed | Assessing the Impact of Trade Barriers on Energy Use in Turbulent Times: Current Conditions and Future Outlook for Greece |
| title_short | Assessing the Impact of Trade Barriers on Energy Use in Turbulent Times: Current Conditions and Future Outlook for Greece |
| title_sort | assessing the impact of trade barriers on energy use in turbulent times current conditions and future outlook for greece |
| topic | Greece non-EU RoW CGE model Input-Output table CES function elasticities of substitution |
| url | https://www.mdpi.com/1996-1073/16/15/5806 |
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