Energy efficiency programs in the context of increasing block tariffs: The case of residential electricity in Mexico

Pedro Hancevic and J. Lopez-Aguilar

No 277442, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: Increasing block pricing schemes represent difficulties for applied researchers who try to recover demand parameters, in particular, price and income elasticities. The Mexican residential electricity tariff structure is amongst the most intricate around the globe. In this paper, we estimate the residential electricity demand and use the corresponding structural parameter estimates to simulate an energy efficiency improvement scenario, as suggested by the Energy Transition Law of December 2015. The simulated program consists of a massive replacement of electric appliances (air conditioners, fans, refrigerators, washing machines, and light-bulbs) for more energy-efficient units. The main empirical findings are the following: overall residential electricity consumption decreases 8.9% and the associated expenditure falls 11.1%. Additionally, the electricity subsidy decreases 360 million of USD per year and there is an annual cut in CO2 emissions of 3.5 million of tons. Acknowledgement : We would like to thank seminar participants at CIDE for their helpful comments and suggestions. We are grateful for the much valuable help on data collection by the Subsecretar ?a de Electricidad at the Mexican Energy Ministry (SENER).

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-ene and nep-reg
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Related works:
Journal Article: Energy efficiency programs in the context of increasing block tariffs: The case of residential electricity in Mexico (2019)
Working Paper: Energy efficiency programs in the context of increasing block tariffs: The case of residential electricity in Mexico (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277442

DOI: 10.22004/ag.econ.277442

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