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Una propuesta de focalización en tarifas energéticas: El Programa Energizar
[An energy tariff targeting proposal: The Energizar Program]

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Listed:
  • Papa, Javier
  • et., al.

Abstract

Access to energy, in this case to a basic electricity service, is considered a human right as established in most countries’ National Constitution. High electricity costs are frequently seen as an obstacle to get energy access in the case of most vul-nerable households. In Argentina, the size of energy subsidies has been growing up to 2.8% of GDP in 2014. The substantial increase in energy tariffs that has occurred since 2016 brought down the weight of such subsidies to 1.1% of GDP in 2019, though it went up again to 2.2% of GDP in 2020 vis-à-vis a reduction in the level of energy tariffs. The purpose of this paper is to put forward a new mechanism for subsidies focalization which is more efficient to reduce the burden on the national budget while, at the same time, is socially fair to allow low-income consumer access to a basic electricity service. Combining both energy policy and social policies in Argentina, the authors suggest the implementation of the so-called Programa Energizar, which would be made of a fixed discount out of the monthly electricity bill of most vulnerable households. Such a discount would become effective through the use of the existing Tarjeta Alimentar, which is oriented towards the purchase of goods and services of low-income consumers. Any further saving in energy consumption could be used to smooth out seasonal variations in consumption and/or be used towards the purchase of additional goods and services, which would represent and incentive towards energy efficiency measures in vulnerable households

Suggested Citation

  • Papa, Javier & et., al., 2022. "Una propuesta de focalización en tarifas energéticas: El Programa Energizar [An energy tariff targeting proposal: The Energizar Program]," MPRA Paper 116742, University Library of Munich, Germany, revised 01 Nov 2022.
  • Handle: RePEc:pra:mprapa:116742
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    References listed on IDEAS

    as
    1. Christoph Lakner & Maria Ana Lugo & Jorge Puig & Leandro Salinardi & Martha Viveros, 2016. "The Incidence of Subsidies to Residential Public Services in Argentina: The Subsidy System in 2014 and Some Alternatives," CEDLAS, Working Papers 0201, CEDLAS, Universidad Nacional de La Plata.
    2. Giuliano, Fernando & Lugo, Maria Ana & Masut, Ariel & Puig, Jorge, 2020. "Distributional effects of reducing energy subsidies: Evidence from recent policy reform in Argentina," Energy Economics, Elsevier, vol. 92(C).
    3. Mariana Marchionni & Walter Sosa-Escudero & Javier Alejo, 2008. "Efectos Distributivos de Esquemas Alternativos de Tarifas Sociales: Una Exploración Cuantitativa," CEDLAS, Working Papers 0069, CEDLAS, Universidad Nacional de La Plata.
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    More about this item

    Keywords

    Energy; Tariff focalization; Subsidies; Efficiency & Equity; Argentina;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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