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dc.titleResidential Electricity Tariffs in Uruguay: In Search for Efficiency Gains while Protecting Low-Income Households
dc.contributor.authorAboal, Diego
dc.contributor.authorGarcía Goñi, Manuel
dc.contributor.authorPereyra, Martin
dc.contributor.authorRubalcaba, Luis
dc.contributor.authorZunino, Gonzalo
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageUruguay
dc.date.available2020-04-15T00:00:00
dc.date.issue2020-04-15T00:00:00
dc.description.abstractPrices transmit information and guide consumption and production decisions. In electricity markets prices usually do not reflect marginal costs of production, and therefore there are opportunities for efficiency gains by rebalancing tariffs. The objective of this paper is twofold. The first goal is to assess the inefficiencies of existing residential electricity tariffs in Uruguay, and some possible long-term consequences for the public electricity companys finances if they are not corrected. The second goal is to study alternative pricing mechanisms that avoid incentives for inefficient behavior, while protecting low-income households. The estimated deadweight loss under the current tariff structure and residential electricity consumption is estimated at 1.2 percent of the total consumer surplus (USD 37 million).
dc.format.extent35
dc.identifier.doihttp://dx.doi.org/10.18235/0002294
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Residential-Electricity-Tariffs-in-Uruguay-In-Search-for-Efficiency-Gains-while-Protecting-Low-Income-Households.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectEnergy Efficiency
dc.subjectResidential Energy Consumption
dc.subjectIncome Distribution
dc.subjectElectricity Market
dc.subjectElectricity Tariff
dc.subjectElectricity Consumption
dc.subjectEnergy Distribution
dc.subject.jelcodeL94 - Electric Utilities
dc.subject.jelcodeL11 - Production, Pricing, and Market Structure • Size Distribution of Firms
dc.subject.jelcodeL13 - Oligopoly and Other Imperfect Markets
dc.subject.keywordsefficiency;Residential electricity tariffs;Income distribution;Distributed energy resources
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-01681
idb.operationRG-K1198
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