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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

    as
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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. Hector Sandoval & Pedro Hancevic & Hernán Bejarano, 2024. "The Hidden Costs of Tariff Misclassification: Structural Winners and Losers," Working Papers DTE 637, CIDE, División de Economía.
    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. 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.
    9. 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.
    10. Hancevic, Pedro & Margulis, Diego, 2016. "Daylight saving time and energy consumption: The case of Argentina," MPRA Paper 80481, University Library of Munich, Germany.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. Cotton, Deborah & De Mello, Lurion, 2014. "Econometric analysis of Australian emissions markets and electricity prices," Energy Policy, Elsevier, vol. 74(C), pages 475-485.
    16. Huang, Luling & Nock, Destenie, 2024. "Estimating the income-related inequality aversion to energy limiting behavior in the United States," Energy Economics, Elsevier, vol. 136(C).
    17. 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.
    18. 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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