Study on the Impacts of Electricity TariffIncrease on the National Economy of Vietnam
The electricity price in Vietnam in 2011 was around 6 US ¢/kWh which is lower than the Long Run Marginal Cost (LRMC) of 9.5 US ¢/kWh. This low price discourages energy productivity enhancement and affects energy supply security. Thus, the Government of Vietnam plans to increase the electricity tariff. This study examines the impacts of increasing electricity tariff to the LRMC on prices of consumer goods and services and the likely distribution impacts by household income quintiles using a static Input-Output approach. The study found that such an increase would drive up the prices of all other products. The price impact, however, is not large. The distribution impact by household income quintiles is also not large. Although the impact is not large, it would be socially difficult to implement this increase at once, particularly given that Vietnam is facing high inflation rates. A roadmap for electricity tariff increase is thus discussed. continuing economic competitiveness in the region.
|This chapter was published in: ||This item is provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Chapters with number
2011-rpr-17-10.||Handle:|| RePEc:era:chaptr:2011-rpr-17-10||Contact details of provider:|| Postal: The ASEAN Secretariat Mezzanine Floor, 70A Jl.Sisingamangaraja, Jakarta 12110|
Web page: http://www.eria.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tiwari, Piyush, 2000. "An analysis of sectoral energy intensity in India," Energy Policy, Elsevier, vol. 28(11), pages 771-778, September.
- Thi Anh Tuyet, Nguyen & Ishihara, Keiichi N., 2006. "Analysis of changing hidden energy flow in Vietnam," Energy Policy, Elsevier, vol. 34(14), pages 1883-1888, September.
When requesting a correction, please mention this item's handle: RePEc:era:chaptr:2011-rpr-17-10. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hiroshi Okasaki)The email address of this maintainer does not seem to be valid anymore. Please ask Hiroshi Okasaki to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.