The paper examines the impact of energy prices on electricity generation by different fuel sources (i.e., oil, gas, and hydropower) in Egypt by employing
the autoregressive distributed lag approach and bounds test. Two models are estimated where the first accounts for oil prices only whereas the second
include both gas and oil prices. In the first model, oil prices negatively affect the electricity produced from oil in the short-run with no impact in the
long-run. Also, hydropower is complementary for oil in electricity production only in the short-term whereas gas is a substitute for oil in both long and
short terms. In the second model, both energy prices influence electricity generation from oil in both short and long runs while gas and hydropower
are respectively, substitute and complementary to oil in both long and short-run. |
