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dc.titleTariff Schemes and Regulations: What Changes are Needed in the Mexican Residential Electricity Sector to Support Efficient Adoption of Green Technologies?
dc.contributor.authorHancevic, Pedro
dc.contributor.authorNúñez, Héctor
dc.contributor.authorRosellón, Juan
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageMexico
dc.date.available2019-09-19T00:00:00
dc.date.issue2019-09-11T00:00:00
dc.description.abstractThe efficient deployment of green technologies, and more generally, the clean energy transition, will require electricity tariff reforms. Existing tariff schemes often fail to achieve basic economic objectives. They set prices per unit that either exceed or fall short of the social marginal cost, they produce unfair distributional outcomes, and they do not favor efficient adoption of green technologies or investment in energy efficiency. In many cases, they also contribute to unsustainable fiscal deficits due to (almost) generalized electricity subsidies. Using household data from Mexico, this paper shows how efficient pricing mechanisms (such as a two-part tariff scheme in the context of efficient nodal price systems), combined with well-designed environmental regulations (e.g., net-metering schemes) and correctly targeted transfer programs (e.g., means testing mechanisms) can improve economic, social, and environmental outcomes significantly, all at once.
dc.format.extent46
dc.identifier.doihttp://dx.doi.org/10.18235/0001871
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Tariff_Schemes_and_Regulations_What_Changes_are_Needed_in_the_Mexican_Residential_Electricity_Sector_to_Support_Efficient_Adoption_of_Green_Technologies_en.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectTechnology Adoption
dc.subjectElectricity Generation
dc.subjectEnergy Efficiency
dc.subjectResidential Energy Consumption
dc.subjectElectricity Tariff
dc.subjectClean Technology
dc.subject.jelcodeO13 - Agriculture • Natural Resources • Energy • Environment • Other Primary Products
dc.subject.jelcodeQ51 - Valuation of Environmental Effects
dc.subject.jelcodeL50 - Regulation and Industrial Policy: General
dc.subject.jelcodeL94 - Electric Utilities
dc.subject.jelcodeQ41 - Demand and Supply • Prices
dc.subject.keywordsResidential electricity; Tariff rebalancing; Nodal Pricing; Solar PV systems; Technology adoption
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01020
idb.operationRG-K1198
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