Energy Poverty on the Flip Side of Energy Subsidies

Maria Laura Alzua, Leonardo Gasparini and Jorge Puig ()
Additional contact information
Maria Laura Alzua: CEFIT-IIE-FCE-UNLP
Leonardo Gasparini: CEDLAS-IIE-FCE-UNLP & ANCE & CONICET

CEDLAS, Working Papers from CEDLAS, Universidad Nacional de La Plata

Abstract: This paper examines the relationship between energy subsidies and energy poverty (EP). Understanding this relationship is important because subsidies are often justified from an equity perspective to protect the most vulnerable households. Argentina, which has subsidized residential energy consumption since the early 2000s, is used as the case study. Since then, the energy subsidy policy has experienced two well-defined phases: massive and universal subsidies until 2015, followed by an attempt at reduction and targeting. This context, combined with notable regional disparities -including variations in income levels, climatic conditions, energy prices, and residential energy consumption patterns (e.g., electricity vs. piped gas)- makes this case study particularly compelling. EP is analyzed both unidimensionally and multidimensionally. Under both measures, EP follows a U-shaped pattern that reflects the phases of energy subsidies: a significant decrease between 2005 and 2013, followed by a considerable increase by 2018. The paper also highlights the key role of regional disparities which is crucial for interpreting the results beyond the Argentine case. Based on the findings, the paper contributes with globally relevant insights on the link between energy subsidy policies and EP.

JEL-codes: D30 H24 I32 Q40 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2025-04
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas348.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dls:wpaper:0348

Access Statistics for this paper

More papers in CEDLAS, Working Papers from CEDLAS, Universidad Nacional de La Plata Contact information at EDIRC.
Bibliographic data for series maintained by Ana Pacheco ().