Cost Liability and Residential Space Heating Expenditures of Welfare Recipients in Germany
AbstractWithin the German welfare system, heating expenditures of recipients are in general fully covered by the government. This paper empirically tests for the hypothesis that households receiving welfare payments turn to over consumption of residential space heating. We use microdata from two different data sources to explore whether conditional heating expenditures of these households significantly differ from those of other households. Our empirical findings suggest that even when controlling for a range of other factors this is indeed the case as heating expenditures lie about 10 percent above those of other households. These results are fairly robust to sensitivity analyses. Our results imply that there is potential scope for cost savings if this policy is changed.
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Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 31.
Length: 18 p.
Date of creation: 2007
Date of revision:
Publication status: Published in: Fiscal Studies 29 (2008) 3, 329-345
Social welfare; Germany; Space heating; Economic incentives;
Other versions of this item:
- Katrin Rehdanz & Sven Stöwhase, 2008. "Cost Liability and Residential Space Heating Expenditures of Welfare Recipients in Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 29(3), pages 329-345, 09.
- Katrin Rehdanz & Sven Stoewhase, 2007. "Cost Liability and Residential Space Heating Expenditures of Welfare Recipients in Germany," Working Papers FNU-139, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2007.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-05 (All new papers)
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- Michelsen, Carl Christian & Madlener, Reinhard, 2011. "Homeowners' Preferences for Adopting Residential Heating Systems: A Discrete Choice Analysis for Germany," FCN Working Papers 9/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
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