Equity effects of energy affordability interventions

Niall Farrell

Economics Letters, 2023, vol. 229, issue C

Abstract: This paper compares the distributional effects of price cap and lump sum transfer policies to aid the affordability of subsistence electricity consumption. A lump sum transfer is more progressive than a comparable price cap on all units of electricity. We identify conditions under which these policies have equal distributional effects. We prove that both interventions are progressive.

Keywords: Energy affordability; Distributional impact; Cost of living; Inequality; Subsidy; Electricity (search for similar items in EconPapers)
JEL-codes: D30 D60 E62 H22 H23 H24 Q4 Q52 Q54 Q58 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:229:y:2023:i:c:s0165176523002124

DOI: 10.1016/j.econlet.2023.111187

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