The Redistributional Impact of Nonlinear Electricity Pricing
2012 ◽
Vol 4
(3)
◽
pp. 56-90
◽
Keyword(s):
Electricity regulators often mandate increasing-block pricing (IBP)—i.e., marginal price increases with the customer's average daily usage—to protect low-income households from rising costs. IBP has no cost basis, raising a classic conflict between efficiency and distributional goals. Combining household-level utility billing data with census data on income, I find that IBP in California results in modest wealth redistribution, but creates substantial deadweight loss relative to the transfers. I also show that a common approach to studying income distribution effects by using median household income within census block groups may be misleading. (JEL D31, L11, L51, L94, L98, Q41, Q48)
Keyword(s):
2021 ◽
Vol 18
(10)
◽
pp. 5127
Keyword(s):
Keyword(s):
2016 ◽
Vol 669
(1)
◽
pp. 63-74
◽
Keyword(s):
Keyword(s):
Keyword(s):
1999 ◽
Vol 5
(2)
◽
pp. 55-57
◽
2018 ◽
Vol 113
◽
pp. 227-242
◽