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Increasing Block Tariff Electricity Pricing and Propensity to Purchase Dirty Fuels: Empirical Evidence from a Natural Experiment

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  • Salim Turdaliev
  • Karel Janda

Abstract

We combine panel household data with the introduction of an increasing block tariffs (IBT) for residential electricity in three experimental regions of Russia to analyze the relationship between the IBT and the propensity of households to purchase dirty fuels. Using a difference-in-differences empirical specification, we find that the propensity to purchase dirty fuels has increased in the regions where the IBT schemes were introduced. The size of the increase varies from 3.8 percentage points for the full sample of households to 13.4 percentage points when restricting the sample to households that do not have access to district heating networks.

Suggested Citation

  • Salim Turdaliev & Karel Janda, 2024. "Increasing Block Tariff Electricity Pricing and Propensity to Purchase Dirty Fuels: Empirical Evidence from a Natural Experiment," Eastern European Economics, Taylor & Francis Journals, vol. 62(4), pages 429-449, July.
    • Handle: RePEc:mes:eaeuec:v:62:y:2024:i:4:p:429-449
    DOI: 10.1080/00128775.2023.2165948
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    Cited by:

    1. Simonovits, András & Kotek, Péter & Horváth, Gábor & Takácsné Tóth, Borbála, 2023. "Az energiaárak támogatása Magyarországon - egy egyszerű modell [Subsidizing energy prices in Hungary - a simple model]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 589-612.

    More about this item

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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