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The Welfare Impact of Rising Block Pricing: Electricity in Colombia

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Listed:
  • Rodney Maddock
  • Elkin Castano

Abstract

In Medellin, Colombia, electricity prices follow an unusual system of rising block prices. The stated objective of the policy is to redistribute income. In this paper we calculate the degree of redistribution achieved relative to that of a horizontal price schedule. We also calculate the efficiency cost of discrimination. The data come from a survey of over 1000 residential users of electricity.

Suggested Citation

  • Rodney Maddock & Elkin Castano, 1991. "The Welfare Impact of Rising Block Pricing: Electricity in Colombia," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 65-78.
    • Handle: RePEc:aen:journl:1991v12-04-a04
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    Cited by:

    1. Sania Malik, 2021. "Residential Electricity Consumers and Increasing Block Pricing Policy in Pakistan: Evidence Based on Household Level Primary Data," Journal of Economic Impact, Science Impact Publishers, vol. 3(2), pages 80-87.
    2. Jorge Barrientos & Esteban Velilla & David Tobón-Orozco & Fernando Villada & Jesús M. López-Lezama, 2018. "On the estimation of the price elasticity of electricity demand in the manufacturing industry of Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 88, pages 155-182, Enero - J.
    3. Arbues, Fernando & Garcia-Valinas, Maria Angeles & Martinez-Espineira, Roberto, 2003. "Estimation of residential water demand: a state-of-the-art review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 81-102, March.
    4. Athukorala, Wasantha & Wilson, Clevo & Managi, Shunsuke & Karunarathna, Muditha, 2019. "Household demand for electricity: The role of market distortions and prices in competition policy," Energy Policy, Elsevier, vol. 134(C).
    5. Zaytseva, Yu. V., 2016. "Econometric Modeling of Electricity Consumption by Households as a Tool for the Calculating of the Social Consumption Norm," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 2(2), pages 259-269.
    6. Yulia Zaitseva, 2016. "Econometric Modeling of Electricity Consumption by Households as a Tool for the Calculation of Social Norms of Consumption," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 405-416.
    7. Estache, Antonio & Foster, Vivien & Wodon, Quentin, 2002. "Making infrastructure reform in Latin America work for the poor," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    8. Wu, Ya & Zhang, Li, 2017. "Evaluation of energy saving effects of tiered electricity pricing and investigation of the energy saving willingness of residents," Energy Policy, Elsevier, vol. 109(C), pages 208-217.
    9. repec:ebl:ecbull:v:9:y:2008:i:20:p:1-10 is not listed on IDEAS
    10. William Ascher, 2023. "Coping with the ambiguities of poverty-alleviation programs and policies: a policy sciences approach," Policy Sciences, Springer;Society of Policy Sciences, vol. 56(2), pages 325-354, June.
    11. Elena Bardasi & Quentin Wodon, 2008. "Who pays the most for water? Alternative providers and service costs in Niger," Economics Bulletin, AccessEcon, vol. 9(20), pages 1-10.

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    JEL classification:

    • F0 - International Economics - - General

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