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Renewable energies (RE) in Chile and around the world have experienced outstanding growth in recent years. However, RE technologies such as solar photovoltaic and wind generate an imbalance between generation (offer) and consumption (demand) because of their intermittent and variable nature. Moreover, RE’s natural variability makes it necessary for conventional technologies to play a significant role in adjusting for the imbalance in the electric system frequency. As variable RE penetration grows, the need for frequency regulation will increase and, depending on how those higher costs are financed, this could lead to a disincentive to invest in conventional plants that provide that service. In this paper we study the impact of increased photovoltaic energy penetration, the leading RE in Chile, on the profitability of different conventional generation technologies. Specifically, we analyze the role that the frequency control remuneration mechanism has on that impact. For this purpose, four different solar photovoltaic penetration scenarios are simulated in Chile’s Northern System, comparing two payment criteria for frequency regulation services: i) a cost-based pricing system whose payments relate to the incurred costs and ii) a market-based pricing system where the marginal cost of providing the services is paid. The results show that as installed photovoltaic capacity increases, the average marginal cost of energy (operation cost) decreases due to a displacement of more expensive power plants, but at the same time, investment cost may increase. In the long run, contract prices change as a result of falling operational costs and rising investment cost, resulting in changes in the profitability of all technologies. Finally, while both cost-based and market-based systems reward the ability to regulate frequency, the technologies performing the regulation receive different payments for the service, affecting both their profitability and the incentives for investment.
Claudio A. Agostini; Franco A. Armijo; Carlos Silva; Shahriyar Nasirov. The role of frequency regulation remuneration schemes in an energy matrix with high penetration of renewable energy. Renewable Energy 2021, 171, 1097 -1114.
AMA StyleClaudio A. Agostini, Franco A. Armijo, Carlos Silva, Shahriyar Nasirov. The role of frequency regulation remuneration schemes in an energy matrix with high penetration of renewable energy. Renewable Energy. 2021; 171 ():1097-1114.
Chicago/Turabian StyleClaudio A. Agostini; Franco A. Armijo; Carlos Silva; Shahriyar Nasirov. 2021. "The role of frequency regulation remuneration schemes in an energy matrix with high penetration of renewable energy." Renewable Energy 171, no. : 1097-1114.
Chile has become one of the first few countries where renewable sources compete directly with conventional generation in price-based auctions. Moreover, the results of energy auctions during the last few years show a remarkable transition from conventional fossil fuels to renewable energies. In fact, the energy auction in 2017, to provide energy to customers from distribution companies, achieved a massive expansion in renewable technology at one of the lowest prices in the world. These positive results prompted the question if such results were permanent or temporal due to factors with limited effects. In this regard, this paper studies the key factors that drove the significant rise of renewable technologies in Chilean energy auctions, obtaining valuable lessons for regulators, not only in Chile, but also in the region and the world. For this purpose, we considered a well-proven method based on a hybrid multicriteria decision-making model to examine and prioritize the main drivers of the expansion of renewables in auctions. The results showed that some specific characteristics of the auction design, particularly the hourly supply blocks, the lead time for project construction, and contract duration, were the most significant drivers for the expansion of renewables in energy auctions. Moreover, the results showed that, provided that the auction design accommodates for such drivers, solar energy ends up as the most attractive technology in the Chilean auctions. The research also shows the main findings are robust by the application of a probabilistic sensitivity analysis.
Shahriyar Nasirov; Eugenio Cruz; Claudio A. Agostini; Carlos Silva. Policy Makers’ Perspectives on the Expansion of Renewable Energy Sources in Chile’s Electricity Auctions. Energies 2019, 12, 4149 .
AMA StyleShahriyar Nasirov, Eugenio Cruz, Claudio A. Agostini, Carlos Silva. Policy Makers’ Perspectives on the Expansion of Renewable Energy Sources in Chile’s Electricity Auctions. Energies. 2019; 12 (21):4149.
Chicago/Turabian StyleShahriyar Nasirov; Eugenio Cruz; Claudio A. Agostini; Carlos Silva. 2019. "Policy Makers’ Perspectives on the Expansion of Renewable Energy Sources in Chile’s Electricity Auctions." Energies 12, no. 21: 4149.
The South American region has experienced a steady increase in its demand for electricity and faces several challenges in the development of the electricity sector. Among them, high fluctuations in hydro generation, high and volatile prices of fossil fuels, and environmental and social impacts associated to energy activities. Strengthening cooperation for cross-border electricity trade is considered a sustainable alternative for addressing these challenges. For the expansion of electricity trade among countries within the region, both infrastructure and a regulation that defines the conditions of the electric power exchanges between countries are required. A good regulatory framework would allow all market players to have access to the commercialization of energy with other countries in the region, guarantee that the treatment of exchanges is non-discriminatory, and maintain the efficiency, cost effectiveness and security characteristics operation of all electricity systems. In this context, this paper proposes a framework with the basic setting conditions for the import and export of energy from the "surplus" available for exchange. The empirical analysis of the regulatory proposal, based on simulations, shows that the exchange of energy from Chile with its neighboring countries is feasible in a clear and transparent manner, reducing the marginal costs of energy and the total cost of operation, keeping the average cost of generation relatively constant.
Claudio A. Agostini; Andrés M. Guzmán; Shahriyar Nasirov; Carlos Silva. A surplus based framework for cross-border electricity trade in South America. Energy Policy 2019, 128, 673 -684.
AMA StyleClaudio A. Agostini, Andrés M. Guzmán, Shahriyar Nasirov, Carlos Silva. A surplus based framework for cross-border electricity trade in South America. Energy Policy. 2019; 128 ():673-684.
Chicago/Turabian StyleClaudio A. Agostini; Andrés M. Guzmán; Shahriyar Nasirov; Carlos Silva. 2019. "A surplus based framework for cross-border electricity trade in South America." Energy Policy 128, no. : 673-684.
Héctor Osorio; Shahriyar Nasirov; Claudio A. Agostini; Carlos Augusto Santos Silva. Assessing the economic viability of energy storage systems in the Chilean electricity system: An empirical analysis from arbitrage revenue perspectives. Journal of Renewable and Sustainable Energy 2019, 11, 015901 .
AMA StyleHéctor Osorio, Shahriyar Nasirov, Claudio A. Agostini, Carlos Augusto Santos Silva. Assessing the economic viability of energy storage systems in the Chilean electricity system: An empirical analysis from arbitrage revenue perspectives. Journal of Renewable and Sustainable Energy. 2019; 11 (1):015901.
Chicago/Turabian StyleHéctor Osorio; Shahriyar Nasirov; Claudio A. Agostini; Carlos Augusto Santos Silva. 2019. "Assessing the economic viability of energy storage systems in the Chilean electricity system: An empirical analysis from arbitrage revenue perspectives." Journal of Renewable and Sustainable Energy 11, no. 1: 015901.
Many countries have special tax regimes (STRs) for small businesses. Even though these regimes may reduce compliance costs, they increase the complexity of the tax system and can be used by high-income individuals to avoid taxes. This paper uses administrative data from Chile to analyze whether the use of STRs is associated with strategic tax planning at the individual level. A descriptive analysis of the data finds three stylized facts that, taken together, are consistent with strategic behavior: STRs are used frequently, they are used mainly by high-income taxpayers, and high-income taxpayers are more likely to hold a portfolio of businesses filing taxes under STRs. We rationalize these facts with a simple model of small business creation and tax planning and test the model’s predictions. We find that following a reform that made a particular STR more restrictive, reported individual incomes from businesses filing under that STR decreased between 10 and 15%, while income reported from alternative sources increased. Overall Taxable Income increased between 4 and 7%. This increase is explained by the more restrictive scenario for avoiding taxes through STRs, consistent with individuals using these regimes for tax planning.
Claudio A. Agostini; Eduardo Engel; Andrea Repetto; Damián Vergara. Using small businesses for individual tax planning: evidence from special tax regimes in Chile. International Tax and Public Finance 2018, 25, 1449 -1489.
AMA StyleClaudio A. Agostini, Eduardo Engel, Andrea Repetto, Damián Vergara. Using small businesses for individual tax planning: evidence from special tax regimes in Chile. International Tax and Public Finance. 2018; 25 (6):1449-1489.
Chicago/Turabian StyleClaudio A. Agostini; Eduardo Engel; Andrea Repetto; Damián Vergara. 2018. "Using small businesses for individual tax planning: evidence from special tax regimes in Chile." International Tax and Public Finance 25, no. 6: 1449-1489.
The energy demand in Chile arises mostly from mining, its largest industry that accounts for about 35% of total electricity consumption. Energy generation to satisfy this demand depends completely on imported fossil fuels. As a result, the mining industry faces several energy related challenges. In particular, the cost and environmental impact of fuel sources are threatening the competitiveness of the industry and urge for new developments. In that regard, the importance of using clean and cost-competitive renewable energy sources has increased significantly in Chile and several government policies helped to increase the investment in them. The impact has been particularly large in the development of solar energy in the northern part of the country, where almost all mines are located. In fact, the country has become one of the largest solar markets in Latin America thanks to its abundant solar resources, favorable market conditions, and successful policy reforms. Solar energy then, could play a significant role as an alternative to satisfy the mining industry's energy demand offering a broad range of technological solutions. This study examines the key issues -barriers and drivers- influencing the adoption of solar technologies in the Chilean mining industry from the perspective of mining actors. As a result of the analysis the paper also provides a scope for appropriate policy interventions.
Shahriyar Nasirov; Claudio A. Agostini. Mining experts' perspectives on the determinants of solar technologies adoption in the Chilean mining industry. Renewable and Sustainable Energy Reviews 2018, 95, 194 -202.
AMA StyleShahriyar Nasirov, Claudio A. Agostini. Mining experts' perspectives on the determinants of solar technologies adoption in the Chilean mining industry. Renewable and Sustainable Energy Reviews. 2018; 95 ():194-202.
Chicago/Turabian StyleShahriyar Nasirov; Claudio A. Agostini. 2018. "Mining experts' perspectives on the determinants of solar technologies adoption in the Chilean mining industry." Renewable and Sustainable Energy Reviews 95, no. : 194-202.
A number of successive energy crises over the last decade due to the lack of a balanced investment planning in the energy sector in Chile has led to a strong dependence on external sources and also doubled energy prices in the country, thus posing a significant challenge to the local economy. With the purpose of reaching long-term goals while simultaneously addressing short-term urgencies, Chile seeks to build a consistent and integrated energy policy in order to attract investment in the sector. Despite an overall attractive investment climate and encouraging market conditions in the country, the energy sector has been adversely affected, in particular, by the communities’ opposition to mega-projects based on their expected environmental and social impacts. The study highlights recent experiences of energy generation mega-projects in terms of addressing aspects of sustainability. Based on these experiences, it discusses underdeveloped role of environmental evaluations and the main regulatory challenges ahead, recommending then public policies to effectively address these challenges.
Claudio A. Agostini; Carlos Silva; Shahriyar Nasirov. Failure of Energy Mega-Projects in Chile: A Critical Review from Sustainability Perspectives. Sustainability 2017, 9, 1073 .
AMA StyleClaudio A. Agostini, Carlos Silva, Shahriyar Nasirov. Failure of Energy Mega-Projects in Chile: A Critical Review from Sustainability Perspectives. Sustainability. 2017; 9 (6):1073.
Chicago/Turabian StyleClaudio A. Agostini; Carlos Silva; Shahriyar Nasirov. 2017. "Failure of Energy Mega-Projects in Chile: A Critical Review from Sustainability Perspectives." Sustainability 9, no. 6: 1073.
In recent years, the development of renewable energies in the electricity market in Chile has gained significant attention as a key alternative for energy sources diversification and meeting three key policy objectives: energy availability, environmental protection, and social-economic development. This study aims to assess various renewable energy sources in order to select suitable sources to accomplish the different policy goals in a country like Chile. For this purpose, a Multi-Criteria Decision Analysis (MCDA) method is employed to evaluate the relative importance of policy objectives. In addition, a sensitivity analysis is conducted to build various different policy scenarios measuring the impact of variations on the current weights of the decision criteria. The results show that solar, wind, and small hydro are the preferred sources in the Chilean renewable energy portfolio, maximizing the objective of meeting the three policy goals at the same time.
Shahriyar Nasirov; Claudio A. Agostini; Carlos Augusto Santos Silva. An assessment of the implementation of renewable energy sources in the light of concerns over Chilean policy objectives. Energy Sources, Part B: Economics, Planning, and Policy 2017, 12, 715 -721.
AMA StyleShahriyar Nasirov, Claudio A. Agostini, Carlos Augusto Santos Silva. An assessment of the implementation of renewable energy sources in the light of concerns over Chilean policy objectives. Energy Sources, Part B: Economics, Planning, and Policy. 2017; 12 (8):715-721.
Chicago/Turabian StyleShahriyar Nasirov; Claudio A. Agostini; Carlos Augusto Santos Silva. 2017. "An assessment of the implementation of renewable energy sources in the light of concerns over Chilean policy objectives." Energy Sources, Part B: Economics, Planning, and Policy 12, no. 8: 715-721.
Claudio A Agostini; Daniel Hojman; Alonso Román; Luis Valenzuela. Segregación residencial de ingresos en el Gran Santiago, 1992-2002: una estimación robusta. EURE (Santiago) 2016, 42, 159 -184.
AMA StyleClaudio A Agostini, Daniel Hojman, Alonso Román, Luis Valenzuela. Segregación residencial de ingresos en el Gran Santiago, 1992-2002: una estimación robusta. EURE (Santiago). 2016; 42 (127):159-184.
Chicago/Turabian StyleClaudio A Agostini; Daniel Hojman; Alonso Román; Luis Valenzuela. 2016. "Segregación residencial de ingresos en el Gran Santiago, 1992-2002: una estimación robusta." EURE (Santiago) 42, no. 127: 159-184.
Journal articleIFPRI3; ISIDSGDP
Claudio A. Agostini; Philip Stahlmann-Brown; Xiaobo Zhang. Neighbour Effects in the Provision of Public Goods in a Young Democracy: Evidence from China. Pacific Economic Review 2016, 21, 13 -31.
AMA StyleClaudio A. Agostini, Philip Stahlmann-Brown, Xiaobo Zhang. Neighbour Effects in the Provision of Public Goods in a Young Democracy: Evidence from China. Pacific Economic Review. 2016; 21 (1):13-31.
Chicago/Turabian StyleClaudio A. Agostini; Philip Stahlmann-Brown; Xiaobo Zhang. 2016. "Neighbour Effects in the Provision of Public Goods in a Young Democracy: Evidence from China." Pacific Economic Review 21, no. 1: 13-31.
In the last decade, the importance of exploiting Chile’s Renewable Energy Sources (RESs) has increased significantly, as fossil fuel prices have risen and concerns regarding climate change issues grown, posing an important threat to its economy. However, to date, the advancement of Renewable Energy Technologies (RETs) in the country has been very limited due to various barriers. For this reason, identifying and mitigating the main barriers that hamper the advancement of RETs is necessary to allow the successful deployment of these technologies. Based on data collected from a questionnaire survey and interviews conducted among the major renewable project developers, the authors identify and rank the major barriers to the adoption of renewable energy technologies in Chile. Our findings show that the most significant barriers include “grid connection constraints and lack of grid capacity”, “longer processing times for a large number of permits”, “land and/or water lease securement” and “limited access to financing”. Furthermore, we discuss the most critical barriers in detail together with policy recommendations to overcome them.
Shahriyar Nasirov; Carlos Augusto Santos Silva; Claudio A. Agostini. Investors’ Perspectives on Barriers to the Deployment of Renewable Energy Sources in Chile. Energies 2015, 8, 3794 -3814.
AMA StyleShahriyar Nasirov, Carlos Augusto Santos Silva, Claudio A. Agostini. Investors’ Perspectives on Barriers to the Deployment of Renewable Energy Sources in Chile. Energies. 2015; 8 (5):3794-3814.
Chicago/Turabian StyleShahriyar Nasirov; Carlos Augusto Santos Silva; Claudio A. Agostini. 2015. "Investors’ Perspectives on Barriers to the Deployment of Renewable Energy Sources in Chile." Energies 8, no. 5: 3794-3814.
Diesel in Chile receives different tax treatments depending on its use. If diesel is used in industrial activities, the diesel taxes paid can be fully used as a credit against VAT, but if it is used in freight or public transportation – basically trucks and buses – only a fraction of diesel taxes paid can be claimed as a tax credit for VAT payments. As a result of this different tax treatment, firms have incentives to use ‘tax‐exempted’ diesel in activities requiring ‘non‐tax‐exempted’ diesel. This tax wedge therefore generates an opportunity for tax evasion, especially for firms with multiple economic activities, one of them being transport. In this paper, we analyse the impact of a tax enforcement programme implemented by the Chilean Internal Revenue Service (IRS), where letters requiring information about diesel purchases and use and vehicle ownership were sent to around 200 firms in 2003. Using different empirical strategies to consider the non‐randomness of the selection of firms, the empirical results show consistently that firms receiving a letter decreased their diesel tax credits by around 10 per cent.
Claudio A. Agostini; Claudia Martínez A.. Response of Tax Credit Claims to Tax Enforcement: Evidence from a Quasi-Experiment in Chile. Fiscal Studies 2014, 35, 41 -65.
AMA StyleClaudio A. Agostini, Claudia Martínez A.. Response of Tax Credit Claims to Tax Enforcement: Evidence from a Quasi-Experiment in Chile. Fiscal Studies. 2014; 35 (1):41-65.
Chicago/Turabian StyleClaudio A. Agostini; Claudia Martínez A.. 2014. "Response of Tax Credit Claims to Tax Enforcement: Evidence from a Quasi-Experiment in Chile." Fiscal Studies 35, no. 1: 41-65.
Claudio A Agostini; Shahriyar Nasirov; Carlos Silva. Solar PV Planning Toward Sustainable Development in Chile: Challenges and Recommendations. 2014, 1 .
AMA StyleClaudio A Agostini, Shahriyar Nasirov, Carlos Silva. Solar PV Planning Toward Sustainable Development in Chile: Challenges and Recommendations. . 2014; ():1.
Chicago/Turabian StyleClaudio A Agostini; Shahriyar Nasirov; Carlos Silva. 2014. "Solar PV Planning Toward Sustainable Development in Chile: Challenges and Recommendations." , no. : 1.
Over the last twenty years there has been a significant concentration process in the pension fund manager industry in Chile (the number of firms has dropped from 21 in 1994 to only 6 in 2012). A major concern about the concentration of this industry is that firms might be able to exercise market power. However, significant efficiency gains could result from this concentration process, especially if there are economies of scale present in the industry. The welfare effect of a merger is, therefore, ambiguous. In this article, we estimate the welfare implications of a merger between two medium-sized pension fund managers in Chile. For this purpose, we estimate the size of the economies of scale in this industry and use the results to simulate the merger using a simple imperfect competition model. The estimations, based on quarterly financial information about the Chilean Pension Funds system for the last eight years, show robustly the presence of significant economies of scale in operating costs. The merger simulation indicates that, despite the cost savings, the merger would induce a small price increase. This effect reduces consumer welfare, but aggregate welfare increases because of the efficiency gains from the economies of scale. Since aggregate elasticity in this industry is zero (because affiliation is compulsory), the price increase does not generate any efficiency loss.
Claudio Agostini; Eduardo Saavedra; Manuel Willington. ECONOMIES OF SCALE AND MERGER EFFICIENCIES IN THE CHILEAN PENSION FUNDS MARKET. Journal of Competition Law & Economics 2013, 10, 137 -159.
AMA StyleClaudio Agostini, Eduardo Saavedra, Manuel Willington. ECONOMIES OF SCALE AND MERGER EFFICIENCIES IN THE CHILEAN PENSION FUNDS MARKET. Journal of Competition Law & Economics. 2013; 10 (1):137-159.
Chicago/Turabian StyleClaudio Agostini; Eduardo Saavedra; Manuel Willington. 2013. "ECONOMIES OF SCALE AND MERGER EFFICIENCIES IN THE CHILEAN PENSION FUNDS MARKET." Journal of Competition Law & Economics 10, no. 1: 137-159.
Claudio A Agostini. INCIDENCIA TRIBUTARIA EN EL MERCADO DE LAS GASOLINAS EN CHILE. Revista de análisis económico 2012, 27, 53 -73.
AMA StyleClaudio A Agostini. INCIDENCIA TRIBUTARIA EN EL MERCADO DE LAS GASOLINAS EN CHILE. Revista de análisis económico. 2012; 27 (2):53-73.
Chicago/Turabian StyleClaudio A Agostini. 2012. "INCIDENCIA TRIBUTARIA EN EL MERCADO DE LAS GASOLINAS EN CHILE." Revista de análisis económico 27, no. 2: 53-73.
En la industria de transporte aéreo en Chile, existe hoy libre ingreso a los mercados, libertad de precios y una mínima intervención del estado. Sin embargo, la evolución de la industria ha generado discusión y preocupación pública en los últimos años respecto a qué tan competitivo es el mercado de transporte doméstico de pasajeros, especialmente en rutas donde opera sólo una aerolínea. Algunas de las preocupaciones y discusiones de política pública similares a las que existen hoy en Chile, han sido el foco de la literatura económica en el tema desde la regulación de los mercados aéreos a fines de los 70 y se han acentuado últimamente con las distintas fusiones y alianzas entre aerolíneas. El gran avance que ha habido, tanto teórico como empírico, ha permitido entender las características específicas de esta industria y los determinantes del grado de competencia en los mercados, por lo que una revisión de la literatura permite obtener lineamientos relevantes para Chile con el objeto de orientar el análisis y discusión de políticas públicas. El objetivo de este trabajo entonces, es hacer una revisión de la literatura económica que de luces respecto a los elementos críticos que uno debería considerar para evaluar el grado de competencia de la industria y los potenciales riesgos anticompetitivos existentes. Dichos elementos permiten orientar la investigación futura respecto a los efectos de la actual política aerocomercial chilena en el grado de competencia en el mercado doméstico y evaluar la implementación de políticas públicas que permitan hacer más competitivo el mercado.
Claudio A. Agostini. El mercado de transporte aéreo: lecciones de política de una revisión de la literatura. Journal of Transport Literature 2012, 6, 239 -277.
AMA StyleClaudio A. Agostini. El mercado de transporte aéreo: lecciones de política de una revisión de la literatura. Journal of Transport Literature. 2012; 6 (3):239-277.
Chicago/Turabian StyleClaudio A. Agostini. 2012. "El mercado de transporte aéreo: lecciones de política de una revisión de la literatura." Journal of Transport Literature 6, no. 3: 239-277.