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The Free Electricity Allowance and the Engel Curve

Author

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  • Denis Conniffe

    (The Economic and Social Research Institute, Dublin)

Abstract

In 1994 over 18 per cent of Irish households possessed a free electricity allowance. This creates complications in using the 1994-95 Household Budget Survey to estimate an Engel curve for electricity expenditure. Ignoring the allowances leads to biased estimates of elasticities and distorts comparisons between sectors. Examining the sub-populations with and without allowances results in conclusions leading to a substantial revision of the income elasticity for household electricity expenditure and to deductions about possible current and past welfare losses inherent in the free electricity scheme.

Suggested Citation

  • Denis Conniffe, 2000. "The Free Electricity Allowance and the Engel Curve," The Economic and Social Review, Economic and Social Studies, vol. 31(2), pages 173-186.
  • Handle: RePEc:eso:journl:v:31:y:2000:i:2:p:173-186
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    File URL: http://www.esr.ie/vol31_2/4Conniffe.pdf
    File Function: First version, 2000
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    References listed on IDEAS

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    1. repec:esr:forcas:mtr07 is not listed on IDEAS
    2. Cantillon, Sara & Curtis, John & FitzGerald, John, 1994. "Medium-Term Review 1994-2000, No. 5," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR05.
    3. Duffy, David & FitzGerald, John & Kearney, Ide & Shortall, Fergal, 1997. "Medium-Term Review 1997-2003, No. 6," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR06.
    4. Conniffe, Denis & Scott, Susan, 1990. "Energy Elasticities: Responsiveness of Demands for Fuels to Income and Price Changes," Research Series, Economic and Social Research Institute (ESRI), number GRS149.
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    Cited by:

    1. Nolan, Brian & Russell, Helen, 2001. "Non-Cash Benefits and Poverty in Ireland," Research Series, Economic and Social Research Institute (ESRI), number PRS39.
    2. Scott, Susan & Eakins, John, 2001. "Household Income Effects and Implementation Options," Book Chapters,in: Green and Bear it? Implementing Market-based Policies for Ireland's Environment - Proceedings of a Conference held on 10 May Economic and Social Research Institute (ESRI).
    3. Curtis, John & Pentecost, Anne, 2014. "Changes in Household Fuel Expenditure Associated with Improvements in Building Energy Efficiency," Papers WP478, Economic and Social Research Institute (ESRI).
    4. Curtis, John & Pentecost, Anne, 2015. "Household fuel expenditure and residential building energy efficiency ratings in Ireland," Energy Policy, Elsevier, vol. 76(C), pages 57-65.
    5. Leahy, Eimear & Lyons, Seán & Walsh, Sharon, 2012. "Electrical Appliance Ownership and Usage in Ireland," Papers WP421, Economic and Social Research Institute (ESRI).

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