This paper describes the current state of the Macedonian electricity sector. It looks at ongoing structural changes …, driven by the gradual adoption of the EU acquis on energy, and comes up with estimates for electricity subsidies. It …

energy prices, we find electricity prices––relative to oil and gas––to be more important in the manufacturing process …, with a one standard deviation reduction in electricity prices leading to a 2.8 percent increase in manufacturing output …. Our estimated elasticities together with plausible reductions in electricity tariffs derived from the energy reform, could …