Revisiting distributional effects of energy subsidies in Argentina

Octavio Bertín, Thomas García, Francisco Pizzi, Alberto Porto, Julian Puig and Jorge Puig ()
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Octavio Bertín: National University of La Plata (UNLP)
Thomas García: National University of La Plata (UNLP)
Francisco Pizzi: National University of La Plata (UNLP)
Alberto Porto: National University of La Plata (UNLP)
Julian Puig: National University of La Plata (UNLP)

International Review of Economics, 2025, vol. 72, issue 1, No 10, 39 pages

Abstract: Abstract We review the distributional incidence of residential energy subsidies using the attractive case of Argentina, a developing country that has massively subsidized electricity in recent decades. Using multiple data sources, we explore two key dimensions often overlooked in prior research. First, we focus on geographic variation, as most previous studies primarily address the Buenos Aires Metropolitan Area (AMBA), the most populous region in the country. However, Argentina’s territorial heterogeneity demands for further analysis, particularly given that the stage of electricity distribution introduces significant differences between jurisdictions. Second, we emphasize the financing of subsidies, as most previous studies generally omit the net incidence. Our results indicate that regional disparities in electricity distribution costs and the pricing strategies of distribution companies are critical factors driving the distributional incidence. Additionally, ignoring the financing of subsidies can lead to a misperception on their redistributive effect.

Keywords: Distributive incidence; Subsidies; Electricity; Argentina (search for similar items in EconPapers)
JEL-codes: D31 D78 H22 Q48 (search for similar items in EconPapers)
Date: 2025
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Working Paper: Revisiting Distributional Effects of Energy Subsidies in Argentina (2024)
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DOI: 10.1007/s12232-025-00484-z

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