Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271684 
Year of Publication: 
2023
Citation: 
[Journal:] DIW Weekly Report [ISSN:] 2568-7697 [Volume:] 13 [Issue:] 14/16 [Year:] 2023 [Pages:] 113-118
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Basic income benefits cover recipients' actual heating expenses as long as they are not unusually high. In contrast, their electricity expenses are only covered via a lump sum at the standard rate. Thus, basic income recipients have weaker incentives for reducing their heating expenses than for reducing their electricity expenses. Using Socio-Economic Panel (SOEP) data, it can be seen that basic income households have higher electricity bills despite this incentive: On average, they spend five euros more on heating and nine euros more on electricity than comparable households not receiving basic income. These higher bills may be due to a lack of sufficient information about their expenses and ways to save energy, or they are unable to save due to non-energy efficient electrical appliances and longer attendance time at home. These interrelationships need to be taken into consideration when drawing up a climate policy that aims to provide savings incentives by increasing the CO2 price; such a policy can only be effective if households are able to react to price incentives. Thus, in addition to increasing the CO2 price, targeted subsidy programs for energy efficiency measures as well as information campaigns for households are needed.
Subjects: 
energy cost
heating cost
income distribution
social transfers
JEL: 
Q41
H53
D31
Persistent Identifier of the first edition: 
Document Type: 
Article

Files in This Item:
File
Size
366.78 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.