Discussion Paper

Environmental Policy, Fuel Prices, and the Switch to Natural Gas inSantiago, Chile

Oct 15, 2008 | Jessica Coria

This was created in partnership with Environment for Development .

Abstract

In this study, I analyze the role of environmental policies and energy cost savings in the switch to natural gas by stationary sources in Chile. According to the data, most of the switching was induced by the lower cost of natural gas, although environmental policies played a small role and showed that sources were more sensitive to the cost of energy than to environmental regulation.