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Energy Poverty on the Flip Side of Energy Subsidies

Author

Listed:
  • Julian Puig

    (CEFIT-IIE-FCE-UNLP)

  • Leonardo Gasparini

    (CEDLAS-IIE-FCE-UNLP & ANCE & CONICET)

  • Jorge Puig

    (CEDLAS-IIE-FCE-UNLP & CEFIT-IIE-FCE-UNLP)

Abstract

This paper examines the relationship between energy subsidies and energy poverty (EP). Understanding this relationship is important because subsidies are often justified from an equity perspective to protect the most vulnerable households. Argentina, which has subsidized residential energy consumption since the early 2000s, is used as the case study. Since then, the energy subsidy policy has experienced two well-defined phases: massive and universal subsidies until 2015, followed by an attempt at reduction and targeting. This context, combined with notable regional disparities -including variations in income levels, climatic conditions, energy prices, and residential energy consumption patterns (e.g., electricity vs. piped gas)- makes this case study particularly compelling. EP is analyzed both unidimensionally and multidimensionally. Under both measures, EP follows a U-shaped pattern that reflects the phases of energy subsidies: a significant decrease between 2005 and 2013, followed by a considerable increase by 2018. The paper also highlights the key role of regional disparities which is crucial for interpreting the results beyond the Argentine case. Based on the findings, the paper contributes with globally relevant insights on the link between energy subsidy policies and EP.

Suggested Citation

  • Julian Puig & Leonardo Gasparini & Jorge Puig, 2025. "Energy Poverty on the Flip Side of Energy Subsidies," CEDLAS, Working Papers 0348, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0348
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • D30 - Microeconomics - - Distribution - - - General
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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