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Evaluating Public Policies for Fair Social Tariffs of Electricity in Brazil by Using an Economic Market Model

Author

Listed:
  • Leticia dos Santos Benso Maciel

    (ISEE-Institute of Electrical Systems and Energy, Federal University of Itajuba, Itajuba MG 37500-903, Brazil)

  • Benedito Donizeti Bonatto

    (ISEE-Institute of Electrical Systems and Energy, Federal University of Itajuba, Itajuba MG 37500-903, Brazil)

  • Hector Arango

    (ISEE-Institute of Electrical Systems and Energy, Federal University of Itajuba, Itajuba MG 37500-903, Brazil)

  • Lucas Gustavo Arango

    (ISEE-Institute of Electrical Systems and Energy, Federal University of Itajuba, Itajuba MG 37500-903, Brazil)

Abstract

This paper presents an evaluation of public policies for fare social tariffs of electricity in Brazil by using an economic model of the electricity market (TAROT-Optimized Tariff) that represents the regulated market of distribution of electrical energy. It was considered the scenario of an increasing number of prosumers (residential consumers who self-generate energy) in two of the five major regions of Brazil which have quite different socioeconomic characteristics. However, the current electricity regulation is the same for all concessionaires. In this work a new public policy is proposed, allowing the use of regulation in a different way aiming for a best result for Brazil and particularly for the poor population that today are not able to enjoy the benefits of electricity due to high tariff values. It is also discussed how this can contribute in a positive way to improve the income distribution in these regions, which is evaluated by using the GINI index.

Suggested Citation

  • Leticia dos Santos Benso Maciel & Benedito Donizeti Bonatto & Hector Arango & Lucas Gustavo Arango, 2020. "Evaluating Public Policies for Fair Social Tariffs of Electricity in Brazil by Using an Economic Market Model," Energies, MDPI, vol. 13(18), pages 1-20, September.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:18:p:4811-:d:413541
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    1. Costa, Vinicius B.F. & Capaz, Rafael S. & Silva, Patrícia F. & Doyle, Gabriel & Aquila, Giancarlo & Coelho, Éden O. & de Lorenci, Eliane & Pereira, Lígia C. & Maciel, Letícia B. & Balestrassi, Pedro P, 2022. "Socioeconomic and environmental consequences of a new law for regulating distributed generation in Brazil: A holistic assessment," Energy Policy, Elsevier, vol. 169(C).
    2. Eduardo Correia & Rodrigo Calili & José Francisco Pessanha & Maria Fatima Almeida, 2023. "Definition of Regulatory Targets for Electricity Non-Technical Losses: Proposition of an Automatic Model-Selection Technique for Panel Data Regressions," Energies, MDPI, vol. 16(6), pages 1-22, March.
    3. Costa, Vinicius B.F. & Bonatto, Benedito D. & Silva, Patrícia F., 2022. "Optimizing Brazil's regulated electricity market in the context of time-of-use rates and prosumers with energy storage systems," Utilities Policy, Elsevier, vol. 79(C).
    4. Maria Alice Moz-Christofoletti & Paula Carvalho Pereda, 2021. "Winners and losers: the distributional impact of a carbon tax in Brazil," Working Papers, Department of Economics 2021_08, University of São Paulo (FEA-USP).
    5. Fernando de Souza Savian & Julio Cezar Mairesse Siluk & Tai s Bisognin Garlet & Felipe Moraes do Nascimento & Jose Renes Pinheiro & Zita Vale, 2022. "Non-technical Losses in Brazil: Overview, Challenges, and Directions for Identification and Mitigation," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 93-107, May.
    6. Costa, Vinicius Braga Ferreira da & Bonatto, Benedito Donizeti, 2023. "Cutting-edge public policy proposal to maximize the long-term benefits of distributed energy resources," Renewable Energy, Elsevier, vol. 203(C), pages 357-372.

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