IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2020i18p4811-d413541.html
   My bibliography  Save this article

Evaluating Public Policies for Fair Social Tariffs of Electricity in Brazil by Using an Economic Market Model

Author

Listed:
  • Leticia dos Santos Benso Maciel

    (ISEE-Institute of Electrical Systems and Energy, Federal University of Itajuba, Itajuba MG 37500-903, Brazil)

  • Benedito Donizeti Bonatto

    (ISEE-Institute of Electrical Systems and Energy, Federal University of Itajuba, Itajuba MG 37500-903, Brazil)

  • Hector Arango

    (ISEE-Institute of Electrical Systems and Energy, Federal University of Itajuba, Itajuba MG 37500-903, Brazil)

  • Lucas Gustavo Arango

    (ISEE-Institute of Electrical Systems and Energy, Federal University of Itajuba, Itajuba MG 37500-903, Brazil)

Abstract

This paper presents an evaluation of public policies for fare social tariffs of electricity in Brazil by using an economic model of the electricity market (TAROT-Optimized Tariff) that represents the regulated market of distribution of electrical energy. It was considered the scenario of an increasing number of prosumers (residential consumers who self-generate energy) in two of the five major regions of Brazil which have quite different socioeconomic characteristics. However, the current electricity regulation is the same for all concessionaires. In this work a new public policy is proposed, allowing the use of regulation in a different way aiming for a best result for Brazil and particularly for the poor population that today are not able to enjoy the benefits of electricity due to high tariff values. It is also discussed how this can contribute in a positive way to improve the income distribution in these regions, which is evaluated by using the GINI index.

Suggested Citation

  • Leticia dos Santos Benso Maciel & Benedito Donizeti Bonatto & Hector Arango & Lucas Gustavo Arango, 2020. "Evaluating Public Policies for Fair Social Tariffs of Electricity in Brazil by Using an Economic Market Model," Energies, MDPI, vol. 13(18), pages 1-20, September.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:18:p:4811-:d:413541
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/18/4811/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/13/18/4811/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. González-Eguino, Mikel, 2015. "Energy poverty: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 377-385.
    2. Bhide, Anjali & Monroy, Carlos Rodríguez, 2011. "Energy poverty: A special focus on energy poverty in India and renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1057-1066, February.
    3. Zubi, Ghassan & Fracastoro, Gian Vincenzo & Lujano-Rojas, Juan M. & El Bakari, Khalil & Andrews, David, 2019. "The unlocked potential of solar home systems; an effective way to overcome domestic energy poverty in developing regions," Renewable Energy, Elsevier, vol. 132(C), pages 1425-1435.
    4. Romero, José Carlos & Linares, Pedro & López, Xiral, 2018. "The policy implications of energy poverty indicators," Energy Policy, Elsevier, vol. 115(C), pages 98-108.
    5. Bodach, Susanne & Hamhaber, J., 2010. "Energy efficiency in social housing: Opportunities and barriers from a case study in Brazil," Energy Policy, Elsevier, vol. 38(12), pages 7898-7910, December.
    6. Gastwirth, Joseph L, 1972. "The Estimation of the Lorenz Curve and Gini Index," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 306-316, August.
    7. Audrey Dobbins & Francesco Fuso Nerini & Paul Deane & Steve Pye, 2019. "Strengthening the EU response to energy poverty," Nature Energy, Nature, vol. 4(1), pages 2-5, January.
    8. Pereira, Marcio Giannini & Freitas, Marcos Aurélio Vasconcelos & da Silva, Neilton Fidelis, 2010. "Rural electrification and energy poverty: Empirical evidences from Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(4), pages 1229-1240, May.
    9. Marchand, Robert & Genovese, Andrea & Koh, S.C. Lenny & Brennan, Alan, 2019. "Examining the relationship between energy poverty and measures of deprivation," Energy Policy, Elsevier, vol. 130(C), pages 206-217.
    10. Bouzarovski, Stefan & Petrova, Saska & Sarlamanov, Robert, 2012. "Energy poverty policies in the EU: A critical perspective," Energy Policy, Elsevier, vol. 49(C), pages 76-82.
    11. Walker, Ryan & Liddell, Christine & McKenzie, Paul & Morris, Chris, 2013. "Evaluating fuel poverty policy in Northern Ireland using a geographic approach," Energy Policy, Elsevier, vol. 63(C), pages 765-774.
    12. Primc, Kaja & Slabe-Erker, Renata & Majcen, Boris, 2019. "Constructing energy poverty profiles for an effective energy policy," Energy Policy, Elsevier, vol. 128(C), pages 727-734.
    13. Scarpellini, Sabina & Alexia Sanz Hernández, M. & Moneva, José M. & Portillo-Tarragona, Pilar & Rodríguez, María Esther López, 2019. "Measurement of spatial socioeconomic impact of energy poverty," Energy Policy, Elsevier, vol. 124(C), pages 320-331.
    14. Pereira, Diogo Santos & Marques, António Cardoso & Fuinhas, José Alberto, 2019. "Are renewables affecting income distribution and increasing the risk of household poverty?," Energy, Elsevier, vol. 170(C), pages 791-803.
    15. Okushima, Shinichiro, 2017. "Gauging energy poverty: A multidimensional approach," Energy, Elsevier, vol. 137(C), pages 1159-1166.
    16. Obermaier, Martin & Szklo, Alexandre & La Rovere, Emilio Lèbre & Pinguelli Rosa, Luiz, 2012. "An assessment of electricity and income distributional trends following rural electrification in poor northeast Brazil," Energy Policy, Elsevier, vol. 49(C), pages 531-540.
    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. Silva, Fernanda A. Cardoso e & Costa, Vinicius Braga Ferreira da & Santos, Ivan Felipe Silva dos & Bonatto, Benedito Donizeti, 2024. "Electric sector modernization in Brazil: Milestones, challenges, and prospects," Utilities Policy, Elsevier, vol. 90(C).
    2. Costa, Vinicius B.F. & Capaz, Rafael S. & Silva, Patrícia F. & Doyle, Gabriel & Aquila, Giancarlo & Coelho, Éden O. & de Lorenci, Eliane & Pereira, Lígia C. & Maciel, Letícia B. & Balestrassi, Pedro P, 2022. "Socioeconomic and environmental consequences of a new law for regulating distributed generation in Brazil: A holistic assessment," Energy Policy, Elsevier, vol. 169(C).
    3. Sermarini, Anna Carolina de Paula & Azevedo, João Henrique Paulino & Albuquerque, Vanessa Cardoso de & Calili, Rodrigo Flora & Gonçalves, Felipe & Jannuzzi, Gilberto, 2024. "Distributed energy resources in low-income communities: A public policy proposal for Brazil," Energy Policy, Elsevier, vol. 187(C).
    4. Eduardo Correia & Rodrigo Calili & José Francisco Pessanha & Maria Fatima Almeida, 2023. "Definition of Regulatory Targets for Electricity Non-Technical Losses: Proposition of an Automatic Model-Selection Technique for Panel Data Regressions," Energies, MDPI, vol. 16(6), pages 1-22, March.
    5. Costa, Vinicius B.F. & Bonatto, Benedito D. & Silva, Patrícia F., 2022. "Optimizing Brazil's regulated electricity market in the context of time-of-use rates and prosumers with energy storage systems," Utilities Policy, Elsevier, vol. 79(C).
    6. Maria Alice Moz-Christofoletti & Paula Carvalho Pereda, 2021. "Winners and losers: the distributional impact of a carbon tax in Brazil," Working Papers, Department of Economics 2021_08, University of São Paulo (FEA-USP).
    7. Fernando de Souza Savian & Julio Cezar Mairesse Siluk & Tai s Bisognin Garlet & Felipe Moraes do Nascimento & Jose Renes Pinheiro & Zita Vale, 2022. "Non-technical Losses in Brazil: Overview, Challenges, and Directions for Identification and Mitigation," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 93-107, May.
    8. Costa, Vinicius Braga Ferreira da & Bonatto, Benedito Donizeti, 2023. "Cutting-edge public policy proposal to maximize the long-term benefits of distributed energy resources," Renewable Energy, Elsevier, vol. 203(C), pages 357-372.

    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. Liu, Zhong & Zhou, Zuanjiu & Liu, Chang, 2023. "Estimating the impact of rural centralized residence policy interventions on energy poverty in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    2. Recep Ulucak & Ramazan Sari & Seyfettin Erdogan & Rui Alexandre Castanho, 2021. "Bibliometric Literature Analysis of a Multi-Dimensional Sustainable Development Issue: Energy Poverty," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    3. Lan, Jing & Khan, Sufyan Ullah & Sadiq, Muhammad & Chien, Fengsheng & Baloch, Zulfiqar Ali, 2022. "Evaluating energy poverty and its effects using multi-dimensional based DEA-like mathematical composite indicator approach: Findings from Asia," Energy Policy, Elsevier, vol. 165(C).
    4. Bezerra, Paula & Cruz, Talita & Mazzone, Antonella & Lucena, André F.P. & De Cian, Enrica & Schaeffer, Roberto, 2022. "The multidimensionality of energy poverty in Brazil: A historical analysis," Energy Policy, Elsevier, vol. 171(C).
    5. Abbas, Khizar & Li, Shixiang & Xu, Deyi & Baz, Khan & Rakhmetova, Aigerim, 2020. "Do socioeconomic factors determine household multidimensional energy poverty? Empirical evidence from South Asia," Energy Policy, Elsevier, vol. 146(C).
    6. George E. Halkos & Panagiotis-Stavros C. Aslanidis, 2023. "Addressing Multidimensional Energy Poverty Implications on Achieving Sustainable Development," Energies, MDPI, vol. 16(9), pages 1-30, April.
    7. Tiwari, Sunil & Si Mohammed, Kamel & Guesmi, Khaled, 2023. "A way forward to end energy poverty in China: Role of carbon-cutting targets and net-zero commitments," Energy Policy, Elsevier, vol. 180(C).
    8. Agnieszka Biernat-Jarka & Paulina Trębska & Sławomir Jarka, 2021. "The Role of Renewable Energy Sources in Alleviating Energy Poverty in Households in Poland," Energies, MDPI, vol. 14(10), pages 1-21, May.
    9. George E. Halkos & Eleni-Christina Gkampoura, 2021. "Coping with Energy Poverty: Measurements, Drivers, Impacts, and Solutions," Energies, MDPI, vol. 14(10), pages 1-14, May.
    10. Dong, Kangyin & Ren, Xiaohang & Zhao, Jun, 2021. "How does low-carbon energy transition alleviate energy poverty in China? A nonparametric panel causality analysis," Energy Economics, Elsevier, vol. 103(C).
    11. Dong, Kangyin & Jiang, Qingzhe & Shahbaz, Muhammad & Zhao, Jun, 2021. "Does low-carbon energy transition mitigate energy poverty? The case of natural gas for China," Energy Economics, Elsevier, vol. 99(C).
    12. Ujang Hendra Gunawan & Nuraeni Kadir & Abdul Rahman Kadir & Muhammad Sobarsyah & Sabbar Dahham Sabbar, 2024. "Regional Disparities in the Efficacy of Renewable Energy Development for Alleviating Energy Poverty in Indonesia: An In-depth Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 254-269, November.
    13. Dong, Kangyin & Dou, Yue & Jiang, Qingzhe, 2022. "Income inequality, energy poverty, and energy efficiency: Who cause who and how?," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    14. Pérez-Fargallo, Alexis & Rubio-Bellido, Carlos & Pulido-Arcas, Jesús A. & Javier Guevara-García, Fco., 2018. "Fuel Poverty Potential Risk Index in the context of climate change in Chile," Energy Policy, Elsevier, vol. 113(C), pages 157-170.
    15. Grazini, Chiara, 2024. "Energy poverty as capacity deprivation: A study of social housing using the partially ordered set," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    16. Wang, Qiang & Kwan, Mei-Po & Fan, Jie & Lin, Jian, 2021. "Racial disparities in energy poverty in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    17. Gawusu, Sidique & Ahmed, Abubakari, 2024. "Analyzing variability in urban energy poverty: A stochastic modeling and Monte Carlo simulation approach," Energy, Elsevier, vol. 304(C).
    18. Magdalena Cyrek & Piotr Cyrek, 2022. "Rural Specificity as a Factor Influencing Energy Poverty in European Union Countries," Energies, MDPI, vol. 15(15), pages 1-24, July.
    19. Scarpellini, Sabina & Alexia Sanz Hernández, M. & Moneva, José M. & Portillo-Tarragona, Pilar & Rodríguez, María Esther López, 2019. "Measurement of spatial socioeconomic impact of energy poverty," Energy Policy, Elsevier, vol. 124(C), pages 320-331.
    20. Dong, Kangyin & Taghizadeh-Hesary, Farhad & Zhao, Jun, 2022. "How inclusive financial development eradicates energy poverty in China? The role of technological innovation," Energy Economics, Elsevier, vol. 109(C).

    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:gam:jeners:v:13:y:2020:i:18:p:4811-:d:413541. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.