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Some Remarks on Residential Electricity Consumption and Social Rate Restructuring

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  • Sanford V. Berg
  • William E. Roth

Abstract

In a recent article surveying electricity demand studies, Lester Taylor examined the implications of multistep block pricing for consumption. The framework he used serves here as the basis for comparing lifeline rates, fuel stamps, and direct cash subsidies -- programs proposed to alleviate the hardships borne by the poor when electricity prices rise substantially. These social programs have redistributive and allocative implications which can be analyzed in the context of multipart block pricing. The analysis suggests that microdata on individual residential consumption are necessary to determine the costs and benefits of social rate restructuring programs.

Suggested Citation

  • Sanford V. Berg & William E. Roth, 1976. "Some Remarks on Residential Electricity Consumption and Social Rate Restructuring," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 690-698, Autumn.
    • Handle: RePEc:rje:bellje:v:7:y:1976:i:autumn:p:690-698
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    Cited by:

    1. Daruwala, Farhad & Denton, Frank T. & Mountain, Dean C., 2020. "One size may not fit all: Welfare benefits and cost reductions with optional differentiated household electricity rates," Resource and Energy Economics, Elsevier, vol. 61(C).
    2. Kanbur, Ravi & Tarkiainen, Ritva & Tuomala, Matti, 1998. "Non-Linear Utility Pricing and Targeting the Poor," Working Papers 179318, Cornell University, Department of Applied Economics and Management.
    3. Farhad Daruwala & Frank T. Denton & Dean C. Mountain, 2017. "One Size May Not Fit All: Welfare Benefits And Cost Reductions With Differentiated Household Electricity Rates In A General Equilibrium Model," Department of Economics Working Papers 2017-03, McMaster University.
    4. Severin Borenstein, 2012. "The Redistributional Impact of Nonlinear Electricity Pricing," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 56-90, August.
    5. Costello, Kenneth W., 2020. "Features of good utility-initiated energy assistance," Energy Policy, Elsevier, vol. 139(C).

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