{
  "title": "Chile: Selected Issues",
  "publication": "IMF Staff Country Reports, February 6, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2024/02/06/chile-selected-issues-544442",
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  "summary": "This Selected Issues paper studies renewable energy and attempts to estimate the gross domestic product (GDP) impact and assesses the role of policies in Chile. Chile has a comparative advantage in renewable energy.",
  "sections": [
    {
      "heading": "Summary and scope",
      "content": "- The paper studies renewable energy in Chile, estimates the gross domestic product (GDP) impact of replacing coal power with solar and wind power, and assesses the role of policies.\n- Emphasis on Chile's comparative advantage in renewable energy and the constraint posed by electricity transmission from production sites to consumption centers."
    },
    {
      "heading": "Key findings",
      "content": "- Replacing coal power with solar and wind power, as announced by the government, could boost the long-term GDP level by at least 1 percentage point.\n- Targeted support for electricity transmission has benefits that exceed costs.\n- State support to industries such as electricity transmission may have economic benefits that outweigh the costs.\n- An additional benefit of the renewable transition is greater economic resilience to abrupt increases in coal and fuel prices that can have large negative impacts on the economy."
    },
    {
      "heading": "Economic impact estimates",
      "content": "- Long-term GDP level boost from replacing coal with solar and wind: at least 1 percentage point."
    },
    {
      "heading": "Transmission constraint and cost‑benefit analysis",
      "content": "- A key constraint for the renewable energy sector is transmission from where it is produced to where it is used.\n- Cost-benefit analysis indicates that targeted state support for electricity transmission can be economically justified, with benefits exceeding costs."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Support the expansion and upgrading of electricity transmission infrastructure to unlock renewable potential.\n- Consider targeted state support for transmission where private incentives do not internalize broader economic benefits.\n- Prioritize policies that increase economic resilience to fuel-price shocks through accelerated renewable deployment and improved grid connectivity.\n\nSource: Chile: Selected Issues (IMF Staff Country Report No. 2024/042).\n\n---\n\n Content in this bundle\n\n- Chile: Selected Issues; IMF Country Report No. 24/42; February 5, 2024\n  - Chile: Selected Issues; IMF Country Report No. 24/42; February 5, 2024 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Chile: Selected Issues; IMF Country Report No. 24/42; February 5, 2024 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: February 6, 2024",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400266591.002",
    "The paper studies renewable energy in Chile, estimates the gross domestic product (GDP) impact of replacing coal power with solar and wind power, and assesses the role of policies.",
    "Emphasis on Chile's comparative advantage in renewable energy and the constraint posed by electricity transmission from production sites to consumption centers.",
    "Replacing coal power with solar and wind power, as announced by the government, could boost the long-term GDP level by at least 1 percentage point.",
    "Targeted support for electricity transmission has benefits that exceed costs.",
    "State support to industries such as electricity transmission may have economic benefits that outweigh the costs.",
    "An additional benefit of the renewable transition is greater economic resilience to abrupt increases in coal and fuel prices that can have large negative impacts on the economy.",
    "Long-term GDP level boost from replacing coal with solar and wind: at least 1 percentage point.",
    "A key constraint for the renewable energy sector is transmission from where it is produced to where it is used.",
    "Cost-benefit analysis indicates that targeted state support for electricity transmission can be economically justified, with benefits exceeding costs.",
    "Support the expansion and upgrading of electricity transmission infrastructure to unlock renewable potential.",
    "Consider targeted state support for transmission where private incentives do not internalize broader economic benefits.",
    "Prioritize policies that increase economic resilience to fuel-price shocks through accelerated renewable deployment and improved grid connectivity.",
    "**Chile: Selected Issues; IMF Country Report No. 24/42; February 5, 2024**"
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