Longitudinal econometric analysis: A business perspective on the renewable energy transformation in Latin America, 2000–2023

Authors

DOI:

https://doi.org/10.61799/2216-0388.2405

Keywords:

applied econometrics, competitiveness, energy sector, installed capacity, longitudinal analysis

Abstract

The energy transformation in Latin America combines a historically high share of renewable generation with heterogeneous national trajectories and technological diversification. This study longitudinally analyzed the transformation of renewable electricity generation in 20 Latin American countries between 2000 and 2023 from a business perspective, considering five dimensions: magnitude, technological composition, renewable penetration, national heterogeneity, and the relationship between installed capacity and generation. Official IRENASTAT data were used to construct a balanced panel of 480 country-year observations. Regional aggregate series, technological composition, and national changes in percentage points were analyzed using descriptive segmented linear models, Pearson and Spearman correlations, and a longitudinal model with country and year fixed effects, complemented by robustness checks. Total renewable generation increased by 84.59%, while its share of total electricity generation was 62.89% in 2000, 58.61% in 2021, 63.44% in 2022, and 62.58% in 2023. The three-year moving average rose from 60.87% in 2000–2002 to 61.54% in 2021–2023. The hydroelectric share of renewable generation changed from 96.36% to 69.03%, accompanied by the expansion of wind, solar, and bioenergy generation. The aggregate trajectory showed descriptive slope changes around 2015–2016. The renewable share of installed capacity was positively associated with the renewable share of generation (β = 0.908; 95% confidence interval [0.396; 1.421]). The hypothesis β = 1 was not rejected (p = 0.712); robustness checks maintained the direction of the association. The five dimensions provide complementary information for monitoring the productive, competitive, and sustainable behavior of the energy sector, without establishing causal relationships.

 

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Published

2026-09-01

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Artículo Originales

How to Cite

[1]
Rueda Vera, G. et al. 2026. Longitudinal econometric analysis: A business perspective on the renewable energy transformation in Latin America, 2000–2023. Mundo FESC Journal. 16, 36 (Sep. 2026). DOI:https://doi.org/10.61799/2216-0388.2405.