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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

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    Cited by:

    1. 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).
    2. Puig Julian Mariano, 2023. "Pobreza Energética en Argentina," Asociación Argentina de Economía Política: Working Papers 4687, Asociación Argentina de Economía Política.
    3. 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.
    4. Dana Sofía Olguín, 2021. "Políticas energéticas en los sectores de petróleo y gas en Argentina: Un análisis de sustentabilidad económica," Asociación Argentina de Economía Política: Working Papers 4499, Asociación Argentina de Economía Política.
    5. De Meio Reggiani, Martin C. & Vazquez, Miguel & Hallack, Michelle & Brignole, Nélida B., 2019. "The role of governmental commitment on regulated utilities," Energy Economics, Elsevier, vol. 84(C).
    6. Diego Barril and Fernando Navajas, 2015. "Natural Gas Supply Behavior under Interventionism: The Case of Argentina," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    7. 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.
    8. 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.
    9. Hancevic, Pedro & Margulis, Diego, 2016. "Daylight saving time and energy consumption: The case of Argentina," MPRA Paper 80481, University Library of Munich, Germany.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. Cotton, Deborah & De Mello, Lurion, 2014. "Econometric analysis of Australian emissions markets and electricity prices," Energy Policy, Elsevier, vol. 74(C), pages 475-485.
    15. Mariano Barrera, 2020. "La regulación de precios en el mercado de combustibles en Argentina (1989-2015): del libre mercado a una estructura oligopólica," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 39(69), pages 103-133, February.
    16. Simonovits, András & Kotek, Péter & Horváth, Gábor & Takácsné Tóth, Borbála, 2023. "Az energiaárak támogatása Magyarországon - egy egyszerű modell [Subsidizing energy prices in Hungary - a simple model]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 589-612.

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    More about this item

    Keywords

    energy prices; distortions; subsidies; welfare effects;
    All these keywords.

    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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