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The Free Electricity Allowance and the Engel Curve

Author

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  • Denis Conniffe

    (The Economic and Social Research Institute, Dublin)

Abstract

In 1994 over 18 per cent of Irish households possessed a free electricity allowance. This creates complications in using the 1994-95 Household Budget Survey to estimate an Engel curve for electricity expenditure. Ignoring the allowances leads to biased estimates of elasticities and distorts comparisons between sectors. Examining the sub-populations with and without allowances results in conclusions leading to a substantial revision of the income elasticity for household electricity expenditure and to deductions about possible current and past welfare losses inherent in the free electricity scheme.

Suggested Citation

  • Denis Conniffe, 2000. "The Free Electricity Allowance and the Engel Curve," The Economic and Social Review, Economic and Social Studies, vol. 31(2), pages 173-186.
    • Handle: RePEc:eso:journl:v:31:y:2000:i:2:p:173-186
    as

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    File URL: http://www.esr.ie/vol31_2/4Conniffe.pdf
    File Function: First version, 2000
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    References listed on IDEAS

    as
    1. Leser, C. E. V., 1964. "A Further Analysis of Irish Household Budget Data, 1951-1952," Research Series, Economic and Social Research Institute (ESRI), number GRS23, June.
    2. Conniffe, Denis & Scott, Susan, 1990. "Energy Elasticities: Responsiveness of Demands for Fuels to Income and Price Changes," Research Series, Economic and Social Research Institute (ESRI), number GRS149, June.
    3. Conniffe, Denis, 2000. "Household Energy Expenditures: Policy Relevant Information from the Household Budget Survey," Research Series, Economic and Social Research Institute (ESRI), number PRS37, June.
    4. repec:esr:forcas:mtr07 is not listed on IDEAS
    5. Cantillon, Sara & Curtis, John & FitzGerald, John, 1994. "Medium-Term Review 1994-2000, No. 5," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR05, June.
    6. Duffy, David & FitzGerald, John & Kearney, Ide & Shortall, Fergal, 1997. "Medium-Term Review 1997-2003, No. 6," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR06, June.
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    Cited by:

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