The Welfare Impact of Rising Block Pricing: Electricity in Colombia*

Rodney Maddock and Elkin Castaño

The Energy Journal, 1991, vol. 12, issue 4, 65-78

Abstract: In Medellin, Colombia, electricity prices follow an unusual system of rising block prices. The stated objective of the policy is to redistribute income. In this paper we calculate the degree of redistribution achieved relative to that of a horizontal price schedule. We also calculate the efficiency cost of discrimination. The data come from a survey of over 1000 residential users of electricity.

Keywords: Electricity pricing; Welfare; Colombia; Energy poverty (search for similar items in EconPapers)
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:12:y:1991:i:4:p:65-78

DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No4-4

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