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...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autores principales: Giuliano, Fernando, Lugo, María Ana, Masut, Ariel, Puig, Jorge Pablo
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2020
Materias:
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
Aporte de:
id I19-R120-10915-103634
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection 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
_version_ 1764820440945000449