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The Free Electricity Allowance and the Engel Curve

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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.

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File URL: http://www.esr.ie/vol31_2/4Conniffe.pdf
File Function: First version, 2000
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Bibliographic Info

Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 31 (2000)
Issue (Month): 2 ()
Pages: 173-186

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Handle: RePEc:eso:journl:v:31:y:2000:i:2:p:173-186

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Web page: http://www.esr.ie

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  1. Cantillon, Sara & Curtis, John & FitzGerald, John, 1994. "Medium-Term Review 1994-2000, No. 5," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR05, March.
  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.
  3. repec:esr:forcas:mtr07 is not listed on IDEAS
  4. 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, March.
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Cited by:
  1. Curtis, John & Pentecost, Anne, 2014. "Changes in Household Fuel Expenditure Associated with Improvements in Building Energy Efficiency," Papers WP478, Economic and Social Research Institute (ESRI).
  2. Brian Nolan & Helen Russell, 2000. "Non-Cash Benefits and Poverty in Ireland," Papers WP130, Economic and Social Research Institute (ESRI).
  3. Scott, Susan & Eakins, John, 2001. "Household Income Effects and Implementation Options," Book Chapters, in: Green and Bear it? Implementing Market-based Policies for Ireland's Environment - Proceedings of a Conference held on 10 May Economic and Social Research Institute (ESRI).

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