Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286338 
Year of Publication: 
2023
Series/Report no.: 
IES Working Paper No. 9/2023
Publisher: 
Charles University in Prague, Institute of Economic Studies (IES), Prague
Abstract: 
This paper examines the heterogeneous effects of the experimental introduction of increasing-block-tariffs (IBT) for residential electricity on the propensity to purchase dirty fuels using panel household data (RLMS-HSE) in a number of regions of Russia. The study demonstrates that despite the design of the IBT being based on prescribed social norms and accounting for various household and dwelling characteristics, the adverse effects of this policy (in the form of increased propensity to purchase dirty fuels) are still more pronounced among households with higher base energy consumption, those receiving subsidies for utilities, and those in a vulnerable social position where the household head's primary occupation is childcare or housekeeping. Additionally, the paper finds that households headed by females are actually 20% less likely to purchase dirty fuels due to the introduction of IBT. The findings suggest that policymakers should fine-tune the calculation of social norms to minimize the negative impacts of IBT. Furthermore, the study's results may be relevant and useful for policymakers in other developing and transition economies that aim to implement various energy reforms, including IBT.
Subjects: 
residential electricity pricing
increasing-block-tariffs
heterogeneous treatment effects
social norms
dirty fuels
post-Soviet economy
Russia
natural experiment
JEL: 
Q41
Q48
L98
L94
Document Type: 
Working Paper

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