Energy Populism and Household Welfare

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 lo...

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Autores principales: Hancevic, Pedro, Cont, Walter, Navajas, Fernando Heberto
Formato: Articulo Preprint
Lenguaje:Inglés
Publicado: 2016
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/128762
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Sumario: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.