Cover: Electricity Prices and the Poor

Electricity Prices and the Poor

What Are the Effects and What Can We Do?

Published 1980

by Jan Paul Acton

Download

Download Free Electronic Document

FormatFile SizeNotes
PDF file 0.5 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 Format Price
Add to Cart Paperback17 pages $20.00

Energy prices have risen faster than consumer prices in general and faster than incomes during the 1970s. Poorer households may have been particularly adversely affected if they have little price responsiveness. The paper explores the evidence of responsiveness to changes in electricity prices among low income households and households using below-average amounts of electricity. Such customers are found to have lower price elasticity of demand, so that price rises are taken mainly out of disposable income. The paper reviews the Los Angeles experience with a lifeline electricity rate for low income senior citizens. The program provided relief from rapidly rising prices without destroying the efficiency gains generally associated with market-clearing prices.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.