The 2013 Mexican Energy Reform in the Context of Sustainable Development Goal 7

Abstract

In 2013, the Mexican Constitution was amended to allow private firms to participate in the energy sector market. Consequently, the energy reform opened the energy market to private investors, ending the state monopoly of PEMEX and CFE. This article aims to assess the impact of the 2013 Mexican Energy Reform on energy household consumption and, if proven effective, explore its potential to help achieve SDG 7. This longitudinal study gathered data before and after the energy bill reform, from 2012 to 2018, with a non-experimental design. Data analysis to determine the effect of the price variance was estimated through price elasticities of demand, and a logarithmic model was used to determine the relationship between the price and cost of electricity, gas, and fuel. Findings suggest that the 2013 Mexican Energy Reform led to an increase in energy prices that, on the one hand, reduced the consumption of energy generated using fossil hydrocarbons but, on the other hand, affected the portion of the population with less income. Consequently, it is possible to conclude that the 2013 Mexican Energy Reform is irreconcilable with SDG 7 unless substantial additional efforts are made to leave no one behind.