Distributional effects of reducing energy subsidies: evidence from recent policy reform in Argentina
We analyze the distributional effects of the reduction in energy subsidies in Argentina since 2016. As the policy reform also includes the introduction of a scheme to protect less well-off families (social tariff), we also review how well the targeting mechanism works. We apply traditional benefit-i...
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Formato: | Articulo Documento de trabajo |
Lenguaje: | Inglés |
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2020
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Acceso en línea: | http://sedici.unlp.edu.ar/handle/10915/103634 http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas267.pdf?dl=0 |
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I19-R120-10915-103634 |
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institution |
Universidad Nacional de La Plata |
institution_str |
I-19 |
repository_str |
R-120 |
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SEDICI (UNLP) |
language |
Inglés |
topic |
Ciencias Económicas Distributive incidence Subsidies Energy Policy reform |
spellingShingle |
Ciencias Económicas Distributive incidence Subsidies Energy Policy reform Giuliano, Fernando Lugo, María Ana Masut, Ariel Puig, Jorge Pablo Distributional effects of reducing energy subsidies: evidence from recent policy reform in Argentina |
topic_facet |
Ciencias Económicas Distributive incidence Subsidies Energy Policy reform |
description |
We analyze the distributional effects of the reduction in energy subsidies in Argentina since 2016. As the policy reform also includes the introduction of a scheme to protect less well-off families (social tariff), we also review how well the targeting mechanism works. We apply traditional benefit-incidence analysis using household surveys and administrative data, focusing on residential subsidies to natural gas and electricity in the Buenos Aires Metropolitan Area. We find that the social tariff is relatively pro-poor, with significantly higher coverage among the poorest households. There are some exclusion errors in the low-income deciles and large inclusion errors in the medium- and high-income deciles. The distributive incidence of subsidies does not appear to have changed substantially. Energy subsidies in Argentina (lower in aggregate terms) continue to be, although progressive, pro-rich.
The distributional effect is explained by the fact that generalized subsidies to all categories of consumption coexist with a relatively well targeted social tariff. Regarding energy budget shares, monthly spending on electricity has increased from 1.1 percent of total household income to 3.4 percent. Monthly spending on piped gas rose from 1.3 percent to 3.3 percent. These shares are in line with many other countries in the region. Naturally, there has been a convergence of tariffs toward service provision costs. |
format |
Articulo Documento de trabajo |
author |
Giuliano, Fernando Lugo, María Ana Masut, Ariel Puig, Jorge Pablo |
author_facet |
Giuliano, Fernando Lugo, María Ana Masut, Ariel Puig, Jorge Pablo |
author_sort |
Giuliano, Fernando |
title |
Distributional effects of reducing energy subsidies: evidence from recent policy reform in Argentina |
title_short |
Distributional effects of reducing energy subsidies: evidence from recent policy reform in Argentina |
title_full |
Distributional effects of reducing energy subsidies: evidence from recent policy reform in Argentina |
title_fullStr |
Distributional effects of reducing energy subsidies: evidence from recent policy reform in Argentina |
title_full_unstemmed |
Distributional effects of reducing energy subsidies: evidence from recent policy reform in Argentina |
title_sort |
distributional effects of reducing energy subsidies: evidence from recent policy reform in argentina |
publishDate |
2020 |
url |
http://sedici.unlp.edu.ar/handle/10915/103634 http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas267.pdf?dl=0 |
work_keys_str_mv |
AT giulianofernando distributionaleffectsofreducingenergysubsidiesevidencefromrecentpolicyreforminargentina AT lugomariaana distributionaleffectsofreducingenergysubsidiesevidencefromrecentpolicyreforminargentina AT masutariel distributionaleffectsofreducingenergysubsidiesevidencefromrecentpolicyreforminargentina AT puigjorgepablo distributionaleffectsofreducingenergysubsidiesevidencefromrecentpolicyreforminargentina |
bdutipo_str |
Repositorios |
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1764820440945000449 |