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Measuring The Affordability Of Basic Public Utility Services In Italy

Author

Listed:
  • RAFFAELE MINIACI

    () (Dipartimento di Scienze Economiche, Università di Brescia)

  • CARLO SCARPA

    () (Dipartimento di Scienze Economiche, Università di Brescia)

  • PAOLA VALBONESI

    () (Dipartimento di Economia, Università di Padova)

Abstract

In this paper we analyse the affordability of water and energy for Italian households. We first document how the regulatory reform has changed the system of price setting, illustrating the dynamics of utility prices and of household expenditure in the period 1998-2005. We then discuss current indices adopted to measure the affordability of public utilities and propose an alternative one, 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 the values of these indices on data from the ‘Survey on Family Budgets’ over the period, and use them to depict the affordability issue in Italy. Our results show that after the Italian reforms of the Nineties (at least until 2005) the affordability of public utility services has not worsened.

Suggested Citation

  • Raffaele Miniaci & Carlo Scarpa & Paola Valbonesi, 2008. "Measuring The Affordability Of Basic Public Utility Services In Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 67(2), pages 185-230, July.
  • Handle: RePEc:gde:journl:gde_v67_n2_p185-230
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    Citations

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    Cited by:

    1. 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).
    2. Miniaci, Raffaele & Scarpa, Carlo & Valbonesi, Paola, 2014. "Energy affordability and the benefits system in Italy," Energy Policy, Elsevier, vol. 75(C), pages 289-300.
    3. Martins, Rita & Quintal, Carlota & Cruz, Luís & Barata, Eduardo, 2016. "Water affordability issues in developed countries – The relevance of micro approaches," Utilities Policy, Elsevier, vol. 43(PA), pages 117-123.
    4. Heindl, Peter & Löschel, Andreas, 2015. "Social implications of green growth policies from the perspective of energy sector reform and its impact on households," ZEW Discussion Papers 15-012, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Raffaele Miniaci & Carlo Scarpa & Paola Valbonesi, 2014. "Fuel poverty and the energy benefits system: The Italian case," IEFE Working Papers 66, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    6. Gawel, Erik & Bretschneider, Wolfgang, 2010. "Investigating affordability problems of utility services - a theoretical study on the ratio measure," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52714, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).

    More about this item

    Keywords

    affordability; public utilities; regulation; gas; electricity; water;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General

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