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Energy deprivation dynamics and regulatory reforms in Europe: Evidence from household panel data

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  • Poggi, Ambra
  • Florio, Massimo

Abstract

The typical ingredients of energy reforms in the European Union (EU) in the 1990s were full or partial privatization, vertical disintegration and liberalization. This paper analyses the effects of energy reforms on the probability of households experiencing deprivation, defined as difficulty in paying the bills. We use two sets of micro-data. First, the European Community Household Panel (ECHP), a large EU survey, offers evidence on people who report having been unable to pay scheduled utility bills. We consider seven European countries: Denmark, Belgium, France, Ireland, Italy, the Netherlands and Spain, and eight ECHP waves (1994-2001), with around 28,000 observations. Second, we also use micro-data from the European Statistics on Income and Living Conditions survey (EU-SILC) 2004-2005, with around 84,000 observations. The countries included are Belgium, France, Ireland, Italy, Spain, Austria, Finland, Luxembourg, Norway and Sweden. As indicators of regulatory reforms in the same countries and years we use ECTR (formerly REGREF), a database provided by the OECD. In both samples we find evidence that privatization increases the probability of households experiencing deprivation. Vertical disintegration has a similar effect and also increases the persistence in the status of household deprivation. Liberalization has no statistically significant effect. We discuss possible interpretations of these findings.

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  • 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.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:1:p:253-264
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    Cited by:

    1. Stefan Bouzarovski, 2014. "Energy poverty in the European Union: landscapes of vulnerability," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 3(3), pages 276-289, May.
    2. Fiorio, Carlo V. & Florio, Massimo, 2013. "Electricity prices and public ownership: Evidence from the EU15 over thirty years," Energy Economics, Elsevier, vol. 39(C), pages 222-232.
    3. Andrea Bastianin & Paolo Castelnovo & Massimo Florio, 2017. "The Empirics of Regulatory Reforms Proxied by Categorical Variables: Recent Findings and Methodological Issues," Working Papers 2017.22, Fondazione Eni Enrico Mattei.
    4. Bacchiocchi, Emanuele & Florio, Massimo & Taveggia, Giulia, 2015. "Asymmetric effects of electricity regulatory reforms in the EU15 and in the New Member States: Empirical evidence from residential prices 1990–2011," Utilities Policy, Elsevier, vol. 35(C), pages 72-90.
    5. Lidia CERIANI & Simona SCABROSETTI, 2011. "The distributional impact of privatization in developing countries: the role of democratic institutions," Departmental Working Papers 2011-31, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    6. Massimo Florio, 2014. "Energy Reforms and Consumer Prices in the EU over twenty Years," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    7. Peter A. Groothuis & Tanga McDaniel Mohr, 2014. "Do Consumers Want Smart Meters? Incentives or Inertia: Evidence from North Carolina and Lessons for Policy," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).

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