The effects of energy price changes: heterogeneous welfare impacts and energy poverty in Indonesia
We study the welfare and energy poverty implications of energy price change scenarios in Indonesia. Our analysis extends previous analyses of energy price impacts at the household level in three ways. First, by employing a household energy demand system (QUAIDS), we are able to distinguish between f...
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| Main Authors: | , , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
2019
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| In: |
Environment and development economics
Year: 2018, Volume: 24, Issue: 2, Pages: 180-200 |
| ISSN: | 1469-4395 |
| DOI: | 10.1017/S1355770X18000402 |
| Online Access: | Verlag, Volltext: https://doi.org/10.1017/S1355770X18000402 Verlag, Volltext: https://www.cambridge.org/core/journals/environment-and-development-economics/article/effects-of-energy-price-changes-heterogeneous-welfare-impacts-and-energy-poverty-in-indonesia/89B03C1523719E32CEF1D523865311BC 
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| Author Notes: | Sebastian Renner, Jann Lay and Michael Schleicher |
| Summary: | We study the welfare and energy poverty implications of energy price change scenarios in Indonesia. Our analysis extends previous analyses of energy price impacts at the household level in three ways. First, by employing a household energy demand system (QUAIDS), we are able to distinguish between first- and second-order welfare effects over the income distribution. Second, our results point to the ownership of energy-processing durables as another source of impact heterogeneity. Third, we extend the welfare analysis beyond the money-metric utility effects and look at energy poverty, which is understood as the absence of or imperfect access to reliable and clean modern energy services. The analysis indicates that energy prices may serve as an effective instrument to reduce energy use but also have important adverse welfare effects. The latter can, however, be mitigated by appropriate compensation policies. |
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| Item Description: | First published online 10 October 2018 Gesehen am 06.08.2019 |
| Physical Description: | Online Resource |
| ISSN: | 1469-4395 |
| DOI: | 10.1017/S1355770X18000402 |