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An empirical investigation on the distributional impact of network charges in Germany

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  • Schlesewsky, Lisa
  • Winter, Simon

Abstract

The increase in network costs within the German electricity grid, due to a rising share of renewable energy generation, has led to higher network charges in recent years. We use socioeconomic data in order to investigate distributional effects within the period 2010-2016, and employ three different inequality metrics - the Gini coefficient, the Theil index and the Atkinson index - all of which unambiguously indicate regressive effects of network charges. The three metrics show an increase of economic inequality of at least 0.6 % when accounting for network charges. This finding is due to 1. the relative inferiority of electricity, 2. the regressive impact of a fixed component of network charges, 3. considerable regional disparities, and 4. the higher prevalence of prosumers within high-income households.

Suggested Citation

  • Schlesewsky, Lisa & Winter, Simon, 2018. "An empirical investigation on the distributional impact of network charges in Germany," CIW Discussion Papers 4/2018, University of Münster, Center for Interdisciplinary Economics (CIW).
    • Handle: RePEc:zbw:ciwdps:42018
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    References listed on IDEAS

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    3. Fouquet, Roger, 2014. "Long run demand for energy services: income and price elasticities over two hundred years," LSE Research Online Documents on Economics 59070, London School of Economics and Political Science, LSE Library.
    4. Schulte, Isabella & Heindl, Peter, 2017. "Price and income elasticities of residential energy demand in Germany," Energy Policy, Elsevier, vol. 102(C), pages 512-528.
    5. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    6. Roger Fouquet, 2014. "Editor's Choice Long-Run Demand for Energy Services: Income and Price Elasticities over Two Hundred Years," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(2), pages 186-207.
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    Cited by:

    1. Schlesewsky Lisa, 2018. "Think small – Das deutsche Stromnetz als Hindernis für die Energiewende," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 69(1), pages 309-338, July.

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    More about this item

    Keywords

    network charges; renewable energies; economic inequality;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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