Open AccessThe Effects of Electricity Sources on the Cost of Electricity in Panama
Author(s) -
Alfredo De La Guardia,
Kemo Badiane
Publication year - 2021
Publication title -
journal of business theory and practice
Language(s) - English
Resource type - Journals
eISSN - 2372-9759
pISSN - 2329-2644
DOI - 10.22158/jbtp.v9n1p64
Subject(s) - electricity , hydroelectricity , panama , electricity generation , marginal cost , production (economics) , natural resource economics , economics , environmental science , environmental economics , power (physics) , engineering , mathematics , macroeconomics , statistics , microeconomics , electrical engineering , physics , quantum mechanics
The purpose of this study is to identify which electricity production sources have a significant effect on the marginal cost of electricity in Panama. Panama, like most Central American countries, relies on hydroelectric power, thermoelectric power and electricity purchases. We only collected secondary data provided by the official entities in order to ensure that the numbers used for the study were consistent. Linear regression analysis was used to find the model that describes the behavior of the marginal cost more accurately. The findings of the study confirm the need for less oil-dependent electricity production alternatives in order to achieve lower electricity prices in Panama.