IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v31y2009i1p162-168.html
   My bibliography  Save this article

Engel curves, household characteristics and low-user tariff schemes in natural gas

Author

Listed:
  • Navajas, Fernando H.

Abstract

We explore the relative importance of income and household characteristics (such as family size) in explaining differences in household consumption of natural gas and LPG. In a simple model of vertically (willingness to pay) ordered households we posit that the relative importance of the income elasticity of demand (vs. the family size elasticity) depends positively on the price faced by households. Thus, very low prices tend to depress the across households income elasticity of demand relative to the characteristic-elasticity and the opposite holds for under high prices. We test this hypothesis using, for the first time in Argentina, data from the household expenditure survey on Natural gas and LPG and compare the cross-consumption equations for both fuels, which have quite different price regimes. Finally, we explore welfare implications for low-user tariff scheme reforms in natural gas.

Suggested Citation

  • Navajas, Fernando H., 2009. "Engel curves, household characteristics and low-user tariff schemes in natural gas," Energy Economics, Elsevier, vol. 31(1), pages 162-168, January.
    • Handle: RePEc:eee:eneeco:v:31:y:2009:i:1:p:162-168
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140-9883(08)00154-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Phlips,Louis, 1983. "The Economics of Price Discrimination," Cambridge Books, Cambridge University Press, number 9780521283946, October.
    2. Fernando H. Navajas, 2006. "Estructuras Tarifarias Bajo Stress," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1-2), pages 77-102, January-D.
    3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
    4. Navajas, Fernando & Porto, Alberto, 1990. "La tarifa en dos partes cuasi óptima. Eficiencia, equidad y financiamiento," El Trimestre Económico, Fondo de Cultura Económica, vol. 57(228), pages 863-887, octubre-d.
    5. Berkhout, Peter H. G. & Ferrer-i-Carbonell, Ada & Muskens, Jos C., 2004. "The ex post impact of an energy tax on household energy demand," Energy Economics, Elsevier, vol. 26(3), pages 297-317, May.
    6. Navajas, Fernando H., 2008. "Infrastructure integration and incomplete contracts: natural gas in the Southern Cone," MPRA Paper 31025, University Library of Munich, Germany.
    7. Fernando H. Navajas, 2006. "Estructuras Tarifarias Bajo Stress," Económica, Instituto de Investigaciones Económicas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1-2), pages 77-102, January-D.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hasan, Syed Abul & Mozumder, Pallab, 2017. "Income and energy use in Bangladesh: A household level analysis," Energy Economics, Elsevier, vol. 65(C), pages 115-126.
    2. Mariana Marchionni & Walter Sosa-Escudero & Javier Alejo, 2008. "La Incidencia Distributiva del Acceso, Gasto y Consumo de los Servicios Públicos," CEDLAS, Working Papers 0067, CEDLAS, Universidad Nacional de La Plata.
    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. Arturo Vásquez & Raúl García & Edwin Quintanilla & Julio Salvador & David Orosco, 2012. "Acceso a la Energía en el Perú : Algunas Opciones de Política," Working Papers 29, Osinergmin, Gerencia de Políticas y Análisis Económico.
    5. Curtis, John & Pentecost, Anne, 2015. "Household fuel expenditure and residential building energy efficiency ratings in Ireland," Energy Policy, Elsevier, vol. 76(C), pages 57-65.
    6. Copiello, Sergio & Grillenzoni, Carlo, 2017. "Is the cold the only reason why we heat our homes? Empirical evidence from spatial series data," Applied Energy, Elsevier, vol. 193(C), pages 491-506.
    7. 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).
    8. Hancevic, Pedro & Cont, Walter & Navajas, Fernando, 2016. "Energy populism and household welfare," Energy Economics, Elsevier, vol. 56(C), pages 464-474.
    9. International Monetary Fund, 2010. "Islamic Republic of Iran: Selected Issues Paper," IMF Staff Country Reports 2010/076, International Monetary Fund.
    10. Ariel Casarin, 2014. "Regulated price reforms and unregulated substitutes: the case of residential piped gas in Argentina," Journal of Regulatory Economics, Springer, vol. 45(1), pages 34-56, February.
    11. 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.
    12. Arbues, Fernando & Villanu´a, Inmaculada & Barberán Ortí, Ramón, 2010. "Household size and residential water demand: an empirical approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 1-20.
    13. Fernando Arbués & Inmaculada Villanúa & Ramón Barberán, 2010. "Household size and residential water demand: an empirical approach ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 61-80, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Navajas Fernando, 2023. "Electricity rate structure design in Latin America: Where do we stand? Where should we go?," Asociación Argentina de Economía Política: Working Papers 4676, Asociación Argentina de Economía Política.
    2. Hancevic, Pedro & Cont, Walter & Navajas, Fernando, 2016. "Energy populism and household welfare," Energy Economics, Elsevier, vol. 56(C), pages 464-474.
    3. Walter Cont & Fernando Navajas & Francisco Pizzi & Alberto Porto, 2020. "Precios y tarifas de servicios públicos. Evolución. 1945-2018," Asociación Argentina de Economía Política: Working Papers 4328, Asociación Argentina de Economía Política.
    4. Simon P. Anderson & Régis Renault, 2011. "Price Discrimination," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 22, Edward Elgar Publishing.
    5. Tarkka, Juha, 1994. "Implicit interest as price discrimination in the bank deposit market," Research Discussion Papers 1/1994, Bank of Finland.
    6. Stole, Lars A., 2007. "Price Discrimination and Competition," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 34, pages 2221-2299, Elsevier.
    7. Iñaki Aguirre, 1999. "Information transmission and incentives not to price discriminate," Spanish Economic Review, Springer;Spanish Economic Association, vol. 1(3), pages 283-299.
    8. Hans Degryse & Steven Ongena, 2005. "Distance, Lending Relationships, and Competition," Journal of Finance, American Finance Association, vol. 60(1), pages 231-266, February.
    9. Stefan Buehler & Daniel Halbheer & Michael Lechner, 2017. "Payment Evasion," Journal of Industrial Economics, Wiley Blackwell, vol. 65(4), pages 804-832, December.
    10. Michael Burda & Michael Funke, 1993. "German trade unions after unification — Third degree wage discriminating monopolists?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 129(3), pages 537-560, September.
    11. Constantatos, Christos & Perrakis, Stylianos, 1995. "Différenciation verticale et structure du marché," L'Actualité Economique, Société Canadienne de Science Economique, vol. 71(1), pages 71-98, mars.
    12. Daniel F. Spulber, 1992. "Economic Analysis And Management Strategy: A Survey," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 1(3), pages 535-574, September.
    13. Begoña García-Mariñoso & Xavier Martinez-Giralt & Pau Olivella, 2008. "Bundling in Telecommunications," UFAE and IAE Working Papers 762.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    14. Simon P. Anderson & Wesley W. Wilson, 2008. "Spatial Competition, Pricing, And Market Power In Transportation: A Dominant Firm Model," Journal of Regional Science, Wiley Blackwell, vol. 48(2), pages 367-397, May.
    15. Andersson, Tommy, 2004. "Essays on Nonlinear Pricing and Welfare," MPRA Paper 59446, University Library of Munich, Germany.
    16. Pazo, M&z. ausco & Consuelo & Jaumandreu, Jordi, 1999. "An empirical oligopoly model of a regulated market," International Journal of Industrial Organization, Elsevier, vol. 17(1), pages 25-57, January.
    17. Tarkka, Juha, 1994. "Implicit interest as price discrimination in the bank deposit market," Bank of Finland Research Discussion Papers 1/1994, Bank of Finland.
    18. Hornbeck, Richard A., 2005. "Price Discrimination and Smuggling of AIDS Drugs," Scholarly Articles 11186012, Harvard University Department of Economics.
    19. Aguirre, Inaki & Paz Espinosa, Maria, 2004. "Product differentiation with consumer arbitrage," International Journal of Industrial Organization, Elsevier, vol. 22(2), pages 219-239, February.
    20. Brian McManus, 2001. "Two‐Part Pricing with Costly Arbitrage," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 369-386, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:31:y:2009:i:1:p:162-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.