Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/157522 
Year of Publication: 
2017
Series/Report no.: 
DIW Discussion Papers No. 1663
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Mexico plans to implement a national program to support the adoption of distributed photo-voltaic generation (DPVG) among qualified households. The main objectives of such a program would be to reduce the burden of the substantial federal energy subsidy and increase the share of renewable energy sources used to generate electricity. In this paper we assess the current conditions under which the Mexican residential electricity sector operates, and quantify the potential effects that the massive adoption of DPV systems would have on household expenditure and welfare, subsidy reduction, pollution and water resource usage. Based on the positive results in terms of both economic and environmental effects, our paper provides a significant support for further design and implementation of a DPVG program.
Subjects: 
distributed solar photovoltaic generation
residential electricity consumption
energy subsidies
air pollution
water resource usage
JEL: 
Q28
Q42
Q53
Document Type: 
Working Paper

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