Spanish economy Electricity prices and their impact on the Spanish economy Share on Twitter Share on Facebook Share on LinkedIn Compartment in Google Plus By L. Electricity prices in the last two years have become one of the main headlines in the press, coffee conversations and the most talked about cases in classrooms, replacing things related to the pandemic, when it used to be a topic that It barely captured the interest of the population and did not deserve the concern of passersby. However, surprisingly, contributed to this acceleration. The opening of economic activity caused excess demand by quickly reactivating it while supply was limited by the same global restrictions. However, the increase in prices has permeated the rest, driven by the prices of raw materials, especially energy, quickly moving to the price of electricity.
Empirical evidence shows the impact that
Raw materials such as oil, natural gas and coal have on the price of electricity. Different factors have contributed to .European countries on the import of natural gas. The reduction in the production of oil and natural gas , the low Brazil WhatsApp Number Data production of coal. The decrease in investment for new deposits. The substitution of investment towards renewable energies, to name a few. However, it has been natural an important component for electricity generation. Although the increase is widespread in Europe, Spain has suffered the worst. As it has been the country where the greatest impact has been generated. Although the increase in inflation began due to the energy component, it has subsequently been transferred to food and non-energy goods and services through changes in production costs, effects that we are experiencing today.
All these variations in electricity prices
Their impact on the price level in turn affect the economic performance of the country and, therefore, social well-being. Inflation reduces purchasing power. Resulting in a drop in demand and production. As the production Spain WhatsApp Number List cost of electricity-intensive productive activities increases. Productive activities that in turn demand intermediate inputs from these sectors will also increase. This increase in prices would produce a fall in the demand for goods and services, reducing production, which would indirectly result in the disposable income of households. Affecting the performance of macroeconomic variables and economic growth. Although, the economic performance in Spain is the product of many factors, one of them the price of electricity. From the Department of Economics at Loyola University, together with prof.
