Political Economy of Electricity Subsidy: Evidence from Punjab
AbstractThe electricity subsidy distribution pattern needs to be scrutinised to assess whether the policy benefits small producers, a normative argument often made while granting any input subsidy. In Punjab, this policy is found to ignore equity considerations while granting non-discriminatory electricity subsidies to the agricultural sector. This study highlights the existence of disparities in the flow of electricity subsidy between the advanced and backward regions. While the medium and large farmers reap the major benefits of the subsidy, the poor small farmers, especially in the backward areas, remain excluded due to their non-possession of electricity connections. In a nutshell, this paper questions the justification for introducing such a policy and puts forward the case for user charges based on open access to electricity.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 240.
Date of creation: 23 Sep 2006
Date of revision:
Publication status: Published in Economic and Political Weekly 38.41(2006): pp. 4072-4080
Political economy; Electricity Subsidy; Agriculture;
Find related papers by JEL classification:
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-10-21 (Agricultural Economics)
- NEP-ALL-2006-10-21 (All new papers)
- NEP-ENE-2006-10-21 (Energy Economics)
- NEP-PBE-2006-10-21 (Public Economics)
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