Distributional Impact Analysis of the Energy Price Reform in Turkey
A pricing reform in Turkey increased the residential electricity tariff by more than 50 percent in 2008. The reform, aimed at encouraging energy efficiency and private investment, sparked considerable policy debate about its potential impact on hou...
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| Format: | Policy Research Working Paper |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005122233 http://hdl.handle.net/10986/3595 |
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okr-10986-35952021-04-23T14:02:11Z Distributional Impact Analysis of the Energy Price Reform in Turkey Zhang, Fan ACCESS TO ELECTRICITY AGGREGATE DEMAND AGRICULTURAL ECONOMICS AIR CONDITIONERS APPROACH AVAILABILITY AVERAGE PRICE BENCHMARK CARBON CARBON TAX CLIMATE CLIMATE CHANGE CONDITIONAL DEMAND CONSUMER SURPLUS CONSUMPTION LEVELS CONSUMPTION PATTERNS DEMAND ANALYSES DEMAND ANALYSIS DEMAND CURVE DEMAND FOR ELECTRICITY DEMAND FORECASTING DEMAND FUNCTION DEMAND FUNCTIONS DEMAND RESPONSE DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTION COMPANY DISTRIBUTIONAL IMPACTS ECONOMIC EFFECTS ECONOMIC RESEARCH ECONOMIC STATISTICS ELECTRIC POWER ELECTRIC SPACE HEATING ELECTRIC UTILITIES ELECTRICITY ELECTRICITY BILLS ELECTRICITY CONSUMPTION ELECTRICITY DEMAND ELECTRICITY DISTRIBUTION ELECTRICITY MARKETS ELECTRICITY PRICE ELECTRICITY PRICES ELECTRICITY PRICING ELECTRICITY PRODUCTION ELECTRICITY SECTOR ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRICITY USAGE ELECTRICITY UTILITY EMPLOYMENT END-USE ENERGY BILLS ENERGY CONSUMPTION ENERGY DEMAND ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY INTENSIVE ENERGY MARKET ENERGY PRICE ENERGY PRICES ENERGY PRICING ENERGY SAVINGS ENERGY SECURITY ENERGY SUPPLY ENVIRONMENTAL COSTS EXOGENOUS VARIABLES EXPENDITURE EXPENDITURES FINANCIAL LOSS FUEL FUEL COSTS FUELS FUTURE RESEARCH GENERATION HIGHER ENERGY PRICES HOUSEHOLD ELECTRICITY CONSUMPTION HOUSEHOLD SECTOR IMPACT ANALYSIS INCOME INCOME DISTRIBUTION INCOME GROUPS INCOME LEVELS INFLATION INSURANCE INVENTORY LABOR MARKETS LAND ECONOMICS LIVING STANDARDS LOWER INCOME HOUSEHOLDS MARGINAL PRICE MARGINAL UTILITY MARKET DEMAND MARKET REFORM NATURAL GAS NATURAL GAS PRICES NORMAL GOOD PARTIAL EQUILIBRIUM ANALYSIS PER CAPITA INCOME PORTFOLIO POWER PRICE CHANGE PRICE CHANGES PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE INCREASE PRICE INCREASES PRICE OF ELECTRICITY PRICE SCHEDULE PRICE SPIKES PRICE VARIATION PRICING MECHANISM PRICING MECHANISMS PRICING POLICIES PRICING REFORM REGULATORY POLICY RESIDENTIAL CONSUMERS RESIDENTIAL DEMAND RESIDENTIAL ENERGY RETAIL SPACE HEATING STATISTICAL ANALYSIS SUBSTITUTE SURPLUS SUSTAINABLE ENERGY TARIFF DESIGN TARIFF STRUCTURE UNDERESTIMATES VERTICAL AXIS WELFARE ANALYSIS WELFARE LOSS A pricing reform in Turkey increased the residential electricity tariff by more than 50 percent in 2008. The reform, aimed at encouraging energy efficiency and private investment, sparked considerable policy debate about its potential impact on household welfare. This paper estimates a short-run residential electricity demand function for evaluating the distributional consequences of the tariff reform. The model allows heterogeneity in household price sensitivities and is estimated using a national sample of 18,671 Turkish households. The model also addresses the common problem of missing data in survey research. The study reveals a highly skewed distribution of price elasticities in the population, with rich households three times more responsive in adjusting consumption to price changes than the poor. This is most likely because the poor are close to their minimum electricity consumption levels and have fewer coping options. In addition, the welfare loss of the poorest quintile -- measured by the consumer surplus change as a percentage of income -- is 2.9 times of that of the wealthiest. 2012-03-19T18:05:13Z 2012-03-19T18:05:13Z 2011-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005122233 http://hdl.handle.net/10986/3595 English Policy Research working paper ; no. WPS 5831 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Europe and Central Asia Europe and Central Asia Middle East Europe Eastern Europe Asia Turkey |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO ELECTRICITY AGGREGATE DEMAND AGRICULTURAL ECONOMICS AIR CONDITIONERS APPROACH AVAILABILITY AVERAGE PRICE BENCHMARK CARBON CARBON TAX CLIMATE CLIMATE CHANGE CONDITIONAL DEMAND CONSUMER SURPLUS CONSUMPTION LEVELS CONSUMPTION PATTERNS DEMAND ANALYSES DEMAND ANALYSIS DEMAND CURVE DEMAND FOR ELECTRICITY DEMAND FORECASTING DEMAND FUNCTION DEMAND FUNCTIONS DEMAND RESPONSE DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTION COMPANY DISTRIBUTIONAL IMPACTS ECONOMIC EFFECTS ECONOMIC RESEARCH ECONOMIC STATISTICS ELECTRIC POWER ELECTRIC SPACE HEATING ELECTRIC UTILITIES ELECTRICITY ELECTRICITY BILLS ELECTRICITY CONSUMPTION ELECTRICITY DEMAND ELECTRICITY DISTRIBUTION ELECTRICITY MARKETS ELECTRICITY PRICE ELECTRICITY PRICES ELECTRICITY PRICING ELECTRICITY PRODUCTION ELECTRICITY SECTOR ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRICITY USAGE ELECTRICITY UTILITY EMPLOYMENT END-USE ENERGY BILLS ENERGY CONSUMPTION ENERGY DEMAND ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY INTENSIVE ENERGY MARKET ENERGY PRICE ENERGY PRICES ENERGY PRICING ENERGY SAVINGS ENERGY SECURITY ENERGY SUPPLY ENVIRONMENTAL COSTS EXOGENOUS VARIABLES EXPENDITURE EXPENDITURES FINANCIAL LOSS FUEL FUEL COSTS FUELS FUTURE RESEARCH GENERATION HIGHER ENERGY PRICES HOUSEHOLD ELECTRICITY CONSUMPTION HOUSEHOLD SECTOR IMPACT ANALYSIS INCOME INCOME DISTRIBUTION INCOME GROUPS INCOME LEVELS INFLATION INSURANCE INVENTORY LABOR MARKETS LAND ECONOMICS LIVING STANDARDS LOWER INCOME HOUSEHOLDS MARGINAL PRICE MARGINAL UTILITY MARKET DEMAND MARKET REFORM NATURAL GAS NATURAL GAS PRICES NORMAL GOOD PARTIAL EQUILIBRIUM ANALYSIS PER CAPITA INCOME PORTFOLIO POWER PRICE CHANGE PRICE CHANGES PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE INCREASE PRICE INCREASES PRICE OF ELECTRICITY PRICE SCHEDULE PRICE SPIKES PRICE VARIATION PRICING MECHANISM PRICING MECHANISMS PRICING POLICIES PRICING REFORM REGULATORY POLICY RESIDENTIAL CONSUMERS RESIDENTIAL DEMAND RESIDENTIAL ENERGY RETAIL SPACE HEATING STATISTICAL ANALYSIS SUBSTITUTE SURPLUS SUSTAINABLE ENERGY TARIFF DESIGN TARIFF STRUCTURE UNDERESTIMATES VERTICAL AXIS WELFARE ANALYSIS WELFARE LOSS |
| spellingShingle |
ACCESS TO ELECTRICITY AGGREGATE DEMAND AGRICULTURAL ECONOMICS AIR CONDITIONERS APPROACH AVAILABILITY AVERAGE PRICE BENCHMARK CARBON CARBON TAX CLIMATE CLIMATE CHANGE CONDITIONAL DEMAND CONSUMER SURPLUS CONSUMPTION LEVELS CONSUMPTION PATTERNS DEMAND ANALYSES DEMAND ANALYSIS DEMAND CURVE DEMAND FOR ELECTRICITY DEMAND FORECASTING DEMAND FUNCTION DEMAND FUNCTIONS DEMAND RESPONSE DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTION COMPANY DISTRIBUTIONAL IMPACTS ECONOMIC EFFECTS ECONOMIC RESEARCH ECONOMIC STATISTICS ELECTRIC POWER ELECTRIC SPACE HEATING ELECTRIC UTILITIES ELECTRICITY ELECTRICITY BILLS ELECTRICITY CONSUMPTION ELECTRICITY DEMAND ELECTRICITY DISTRIBUTION ELECTRICITY MARKETS ELECTRICITY PRICE ELECTRICITY PRICES ELECTRICITY PRICING ELECTRICITY PRODUCTION ELECTRICITY SECTOR ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRICITY USAGE ELECTRICITY UTILITY EMPLOYMENT END-USE ENERGY BILLS ENERGY CONSUMPTION ENERGY DEMAND ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY INTENSIVE ENERGY MARKET ENERGY PRICE ENERGY PRICES ENERGY PRICING ENERGY SAVINGS ENERGY SECURITY ENERGY SUPPLY ENVIRONMENTAL COSTS EXOGENOUS VARIABLES EXPENDITURE EXPENDITURES FINANCIAL LOSS FUEL FUEL COSTS FUELS FUTURE RESEARCH GENERATION HIGHER ENERGY PRICES HOUSEHOLD ELECTRICITY CONSUMPTION HOUSEHOLD SECTOR IMPACT ANALYSIS INCOME INCOME DISTRIBUTION INCOME GROUPS INCOME LEVELS INFLATION INSURANCE INVENTORY LABOR MARKETS LAND ECONOMICS LIVING STANDARDS LOWER INCOME HOUSEHOLDS MARGINAL PRICE MARGINAL UTILITY MARKET DEMAND MARKET REFORM NATURAL GAS NATURAL GAS PRICES NORMAL GOOD PARTIAL EQUILIBRIUM ANALYSIS PER CAPITA INCOME PORTFOLIO POWER PRICE CHANGE PRICE CHANGES PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE INCREASE PRICE INCREASES PRICE OF ELECTRICITY PRICE SCHEDULE PRICE SPIKES PRICE VARIATION PRICING MECHANISM PRICING MECHANISMS PRICING POLICIES PRICING REFORM REGULATORY POLICY RESIDENTIAL CONSUMERS RESIDENTIAL DEMAND RESIDENTIAL ENERGY RETAIL SPACE HEATING STATISTICAL ANALYSIS SUBSTITUTE SURPLUS SUSTAINABLE ENERGY TARIFF DESIGN TARIFF STRUCTURE UNDERESTIMATES VERTICAL AXIS WELFARE ANALYSIS WELFARE LOSS Zhang, Fan Distributional Impact Analysis of the Energy Price Reform in Turkey |
| geographic_facet |
Europe and Central Asia Europe and Central Asia Middle East Europe Eastern Europe Asia Turkey |
| relation |
Policy Research working paper ; no. WPS 5831 |
| description |
A pricing reform in Turkey increased the
residential electricity tariff by more than 50 percent in
2008. The reform, aimed at encouraging energy efficiency and
private investment, sparked considerable policy debate about
its potential impact on household welfare. This paper
estimates a short-run residential electricity demand
function for evaluating the distributional consequences of
the tariff reform. The model allows heterogeneity in
household price sensitivities and is estimated using a
national sample of 18,671 Turkish households. The model also
addresses the common problem of missing data in survey
research. The study reveals a highly skewed distribution of
price elasticities in the population, with rich households
three times more responsive in adjusting consumption to
price changes than the poor. This is most likely because the
poor are close to their minimum electricity consumption
levels and have fewer coping options. In addition, the
welfare loss of the poorest quintile -- measured by the
consumer surplus change as a percentage of income -- is 2.9
times of that of the wealthiest. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Zhang, Fan |
| author_facet |
Zhang, Fan |
| author_sort |
Zhang, Fan |
| title |
Distributional Impact Analysis of the Energy Price Reform in Turkey |
| title_short |
Distributional Impact Analysis of the Energy Price Reform in Turkey |
| title_full |
Distributional Impact Analysis of the Energy Price Reform in Turkey |
| title_fullStr |
Distributional Impact Analysis of the Energy Price Reform in Turkey |
| title_full_unstemmed |
Distributional Impact Analysis of the Energy Price Reform in Turkey |
| title_sort |
distributional impact analysis of the energy price reform in turkey |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005122233 http://hdl.handle.net/10986/3595 |
| _version_ |
1764387365246205952 |