scholarly journals Efficiency and Equity Impacts of Energy Subsidies

2021 ◽  
Vol 111 (5) ◽  
pp. 1658-1688
Author(s):  
Robert W. Hahn ◽  
Robert D. Metcalfe
Keyword(s):  
Natural Gas ◽  
Low Income ◽  
Social Cost ◽  
Energy Subsidies ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Natural Field Experiment ◽  
Excessive Consumption ◽  
Low Income Consumers ◽  
Energy Subsidy

Economic theory suggests that energy subsidies can lead to excessive consumption and environmental degradation. However, the precise impact of energy subsidies is not well understood. We analyze a large energy subsidy: the California Alternate Rates for Energy (CARE). CARE provides a price reduction for low-income consumers of natural gas and electricity. Using a natural field experiment, we estimate the price elasticity of demand for natural gas to be about −0.35 for CARE customers. An economic model of this subsidy yields three results. First, the natural gas subsidy appears to reduce welfare. Second, the economic impact of various policies, such as cap-and-trade, depends on whether prices for various customers move closer to the marginal social cost. Third, benefits to CARE customers need to increase by 6 percent to offset the costs of the program. (JEL C93, D61, H24, L94, L95, L98, Q48)

scholarly journals Estimating the price elasticity of demand for cigarettes in South Africa using the Deaton approach

BMJ Open ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. e046279
Author(s):  
Chengetai Dare ◽  
Micheal Kofi Boachie ◽  
Ernest Ngeh Tingum ◽  
S M Abdullah ◽  
Corné van Walbeek
Keyword(s):  
South Africa ◽  
Price Elasticity ◽  
Low Income ◽  
National Income ◽  
Evidence Base ◽  
Middle Income ◽  
Excise Tax ◽  
Illicit Trade ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand

ObjectiveTo estimate the price elasticity of demand for South Africa and thereby contribute to growing the evidence base of the likely impact of excise taxes on cigarette demand in low-income and middle-income countries.MethodsWe employ the Deaton method, using wave 5 data from the South African National Income Dynamics Study, to estimate the cigarette price elasticity for South Africa. We used a sample of 6820 households.ResultsOf the 6 820 households in the sample for which we had sufficient data, 1341 (19.7%) spent money on tobacco. The price elasticity of demand for cigarettes is estimated at −0.86 (95% CI −1.37 to −0.35), implying that the demand for cigarettes in South Africa declines by 8.6% for every 10% increase in price.ConclusionThe negative price elasticity estimate for South Africa indicates that increases in the excise tax are particularly effective in controlling cigarette consumption. However, given the presence of a significant illicit tobacco market in the country, it is important that authorities augment tax measures with strategies that curb the illicit trade in cigarettes.

Price elasticity of demand for manufactured cigarettes and roll-your-own cigarettes across socioeconomic status groups in Thailand

2020 ◽  
pp. tobaccocontrol-2019-055480
Author(s):  
Jintana Jankhotkaew ◽  
Siriwan Pitayarangsarit ◽  
Surasak Chaiyasong ◽  
Kamolphat Markchang
Keyword(s):  
Socioeconomic Status ◽  
Price Elasticity ◽  
Low Income ◽  
Price Change ◽  
Tobacco Consumption ◽  
High Price ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Pricing Policies ◽  
Different Types

BackgroundPricing policies have been proven to be effective in reducing tobacco consumption. However, studies investigating the effectiveness of pricing policies across different types of tobacco products and socioeconomic status (SES) groups are limited, particularly in low-income and middle-income countries.ObjectiveThis study aimed to quantify the price elasticity of demand for different types of cigarettes across different SES groups.MethodsThis study used data from a nationally representative survey in Thailand conducted in 2017 and included current smokers aged at least 15 years. To quantify the price elasticity of demand for cigarette consumption, a two-part model was employed for five different types of cigarettes: domestic and imported manufactured cigarettes with a low and high price, and roll-your-own cigarettes. Personal income was used to determine SES.ResultsPrice elasticity of demand for cigarettes exists for all types of cigarettes. The price elasticity of demand for manufactured and roll-your-own cigarettes was −0.49 (p<0.05) and −0.32 (p<0.05), respectively. People who smoked domestic manufactured cigarettes were more responsive to price change than those who smoked imported manufactured cigarettes. Low-income smokers of manufactured and roll-your-own cigarettes were more responsive to price change than those with high income.ConclusionSmokers with a low income were more responsive to price change than those with higher income. The effectiveness of pricing policy in reducing demand for manufactured cigarettes was greater in domestic cigarettes than imported ones.

Illicit Drugs: Price Elasticity of Demand and Supply

2002 ◽  
Author(s):  
William Rhodes ◽  
Patrick Johnston ◽  
Song Han ◽  
Quentin McMullen ◽  
Lynne Hozik
Keyword(s):  
Price Elasticity ◽  
Illicit Drugs ◽  
Demand And Supply ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand

RESEARCH OF PRICE ELASTICITY OF DEMAND FOR PAID DENTAL SERVICES

2017 ◽  
Vol 19 (3) ◽  
pp. 78-81
Author(s):  
Je.H. Sahibgareeva ◽  
◽  
S.N. Cherkasov ◽  
A.Ju. Bragin ◽  
◽  
...  
Keyword(s):  
Price Elasticity ◽  
Dental Services ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand

On the Price Elasticity of Demand for Patents

2010 ◽  
Author(s):  
Gaétan de Rassenfosse ◽  
Bruno van Pottelsberghe de la Potterie
Keyword(s):  
Price Elasticity ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand

scholarly journals Estimating the price elasticity of demand for JUUL E-cigarettes among teens

2021 ◽  
Vol 218 ◽  
pp. 108406
Author(s):  
Jay R. Corrigan ◽  
Bailey N. Hackenberry ◽  
Victoria C. Lambert ◽  
Matthew C. Rousu ◽  
James F. Thrasher ◽  
...  
Keyword(s):  
Price Elasticity ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand
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