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Distributional effects of price reforms in the Italian utility markets

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Author Info

  • Raffaele Miniaci

    ()
    (Università di Brescia)

  • Carlo Scarpa

    ()
    (Università di Brescia)

  • Paola Valbonesi

    ()
    (Università di Padova)

Abstract

In this paper we analyse some distributional effects of the reforms of water and energy services in Italy. We first document the new regulation setting in these services, illustrating the dynamics of utility prices and of household expenditure in the period 1998-2005. We then propose a way to measure the affordability of public utilities, in order to investigate how many households would incur a potentially excessive burden, if they consumed a minimum quantity of utility services. Finally, we calculate this index on data from the ‘Survey on Family Budgets’. Our results show how the affordability of utility bills varies from region to region depending on climate, income, family endowment and size. The analysis – also based on a counterfactual exercise – finds that so far, utility reforms do not seem to have produced any negative effects on weaker households.

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Bibliographic Info

Paper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0050.

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Length: 43 pages
Date of creation: Sep 2007
Date of revision:
Handle: RePEc:pad:wpaper:0050

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Related research

Keywords: Affordability; Public Utilities; Regulation; Gas; Electricity; Water;

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Cited by:
  1. Poggi, Ambra & Florio, Massimo, 2010. "Energy deprivation dynamics and regulatory reforms in Europe: Evidence from household panel data," Energy Policy, Elsevier, vol. 38(1), pages 253-264, January.
  2. Judith Clifton & Daniel Díaz-Fuentes & Marcos Fernández-Gutiérrez & Julio Revuelta, 2011. "The new regulation of public infrastructure services in the European Union. Challenges for territorial cohesion," ERSA conference papers ersa11p1416, European Regional Science Association.
  3. Fernando Navajas Hancevic y & Pedro Hancevic, 2008. "Adaptación Tarifaria y Tarifa Social: Simulaciones para Gas Natural y Electricidad en el AMBA," Working Papers 96, FIEL.
  4. Alessandro Petretto, 2008. "The impact of productive efficiency and quality of a regulated local public utility on final goods prices and consumers welfare," Working Papers - Economics wp2008_10.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  5. Gawel, Erik & Sigel, Katja & Bretschneider, Wolfgang, 2011. "Affordability of water supply in Mongolia: Empirical lessons for measuring affordability," UFZ Discussion Papers 9/2011, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).

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