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Energy populism and household welfare

Author

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  • Cont, Walter
  • Hancevic, Pedro
  • Navajas, Fernando H.

Abstract

We study a cycle of subsidized energy prices and estimate its welfare impact on households in the Buenos Aires Metropolitan Region. A simple framework explains its emergence in terms of the preference of a median household (voter) for receiving transfer gains followed by a future flow of transfer losses. We evaluate actual transfers and welfare effects that a departure of prices of natural gas and electricity generation from opportunity costs since 2003 had on households and explore the impact of a way back to opportunity cost pricing.

Suggested Citation

  • Cont, Walter & Hancevic, Pedro & Navajas, Fernando H., 2011. "Energy populism and household welfare," MPRA Paper 35725, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:35725
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Hancevic, Pedro I. & Nuñez, Hector M. & Rosellon, Juan, 2017. "Distributed photovoltaic power generation: Possibilities, benefits, and challenges for a widespread application in the Mexican residential sector," Energy Policy, Elsevier, vol. 110(C), pages 478-489.
    2. Mariana Marchionni & Pablo Glüzmann, 2010. "Distributional Incidence of Social, Infrastructure, and Telecommunication Services in Latin America," CEDLAS, Working Papers 0097, CEDLAS, Universidad Nacional de La Plata.
    3. Barril, Diego & Navajas, Fernando H., 2011. "What drove down natural gas production in Argentina?," MPRA Paper 35726, University Library of Munich, Germany, revised Nov 2011.
    4. Hancevic, Pedro & Margulis, Diego, 2016. "Daylight saving time and energy consumption: The case of Argentina," MPRA Paper 80481, University Library of Munich, Germany.
    5. Pécastaing, Nicolas & Dávalos, Jorge & Inga, Andy, 2018. "The effect of Peru's CDM investments on households’ welfare: An econometric approach," Energy Policy, Elsevier, vol. 123(C), pages 198-207.
    6. Krauss, Alexander, 2016. "How natural gas tariff increases can influence poverty: Results, measurement constraints and bias," Energy Economics, Elsevier, vol. 60(C), pages 244-254.
    7. Sa, Aida & Thollander, Patrik & Cagno, Enrico, 2017. "Assessing the driving factors for energy management program adoption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 538-547.
    8. Navajas, Fernando H. & Panadeiros, Monica & Natale, Oscar, 2011. "Environmentally Related Energy Taxes in Argentina, Bolivia and Uruguay," MPRA Paper 37829, University Library of Munich, Germany.
    9. Cotton, Deborah & De Mello, Lurion, 2014. "Econometric analysis of Australian emissions markets and electricity prices," Energy Policy, Elsevier, vol. 74(C), pages 475-485.

    More about this item

    Keywords

    energy prices; distortions; subsidies; welfare effects;

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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