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A Welfare Measure of a New Type of Energy Assistance Program

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  • Kenneth W. Costello

Abstract

The sharp increase in utility rates since the 1970s has inflicted great hardship on low-income households. For many, paying their utility bills means sacrificing the purchase of other commodities essential to their economic well-being.' Another symptom of this problem is exhibited by the increased number of low-income people whose utility service has been cut off. Energy assistance programs have been instituted to cope with this serious problem. The major objectives of these programs are: (a) to make energy more affordable to the poor, thereby reducing the number of service disconnections, and (b) to limit how much the poor must pay for energy so that more funds are available for purchasing other essential commodities.

Suggested Citation

  • Kenneth W. Costello, 1988. "A Welfare Measure of a New Type of Energy Assistance Program," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 129-142.
    • Handle: RePEc:aen:journl:1988v09-03-a06
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    Cited by:

    1. Costello, Kenneth W., 2020. "Features of good utility-initiated energy assistance," Energy Policy, Elsevier, vol. 139(C).

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    JEL classification:

    • F0 - International Economics - - General

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