Energy populism and household welfare

Walter Cont, Pedro Hancevic and Fernando H. Navajas

MPRA Paper from University Library of Munich, Germany

Abstract: We study a cycle of subsidized energy prices and estimate its welfare impact on households in the Buenos Aires Metropolitan Region. A simple framework explains its emergence in terms of the preference of a median household (voter) for receiving transfer gains followed by a future flow of transfer losses. We evaluate actual transfers and welfare effects that a departure of prices of natural gas and electricity generation from opportunity costs since 2003 had on households and explore the impact of a way back to opportunity cost pricing.

Keywords: energy prices; distortions; subsidies; welfare effects (search for similar items in EconPapers)
JEL-codes: D78 H22 Q48 (search for similar items in EconPapers)
Date: 2011-04
New Economics Papers: this item is included in nep-cwa, nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Journal Article: Energy populism and household welfare (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:35725

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