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The Welfare Impact of Rising Block Pricing: Electricity in Colombia

Author

Listed:
  • Rodney Maddock
  • Elkin Castaño

Abstract

In Medellin, Colombia, electricity prices follow an unusual system of rising block prices. The stated objective of the policy is to redistribute income. In this paper we calculate the degree of redistribution achieved relative to that of a horizontal price schedule. We also calculate the efficiency cost of discrimination. The data come from a survey of over 1000 residential users of electricity.

Suggested Citation

  • Rodney Maddock & Elkin Castaño, 1991. "The Welfare Impact of Rising Block Pricing: Electricity in Colombia," The Energy Journal, , vol. 12(4), pages 65-78, October.
    • Handle: RePEc:sae:enejou:v:12:y:1991:i:4:p:65-78
    DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No4-4
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