## Chile: Selected Issues

_IMF Staff Country Reports, February 6, 2024_

## Source details

**Canonical URL:** [Chile: Selected Issues](https://www.imf.org/en/publications/cr/issues/2024/02/06/chile-selected-issues-544442)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/02/06/chile-selected-issues-544442/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/02/06/chile-selected-issues-544442/index.json)
- [Bundle manifest](/en/publications/cr/issues/2024/02/06/chile-selected-issues-544442/bundle-manifest.json)

## Bibliographic details
- Published: February 6, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400266591.002

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### Summary and scope
- 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.

### Key findings
- 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.

### Economic impact estimates
- Long-term GDP level boost from replacing coal with solar and wind: at least 1 percentage point.

### Transmission constraint and cost‑benefit analysis
- 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.

### Policy implications and recommendations
- 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.

*Source: Chile: Selected Issues (IMF Staff Country Report No. 2024/042).*

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## Content in this bundle

- **Chile: Selected Issues; IMF Country Report No. 24/42; February 5, 2024**
  - [Chile: Selected Issues; IMF Country Report No. 24/42; February 5, 2024 (Markdown version)](/-/media/files/publications/cr/2024/english/1chlea2024002.pdf.md){rel="alternate" type="text/markdown"}
  - [Chile: Selected Issues; IMF Country Report No. 24/42; February 5, 2024 (PDF)](/-/media/files/publications/cr/2024/english/1chlea2024002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/02/06/chile-selected-issues-544442_