Some Remarks on Residential Electricity Consumption and Social Rate Restructuring

Sanford Berg and William E. Roth

Bell Journal of Economics, 1976, vol. 7, issue 2, 690-698

Abstract: In a recent article surveying electricity demand studies, Lester Taylor examined the implications of multistep block pricing for consumption. The framework he used serves here as the basis for comparing lifeline rates, fuel stamps, and direct cash subsidies -- programs proposed to alleviate the hardships borne by the poor when electricity prices rise substantially. These social programs have redistributive and allocative implications which can be analyzed in the context of multipart block pricing. The analysis suggests that microdata on individual residential consumption are necessary to determine the costs and benefits of social rate restructuring programs.

Date: 1976
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