Publication on reforms in electricity pricing and energy consumption

A new publication authored by Labandeira et al. deals with effects of two-part tariff schemes on electricity consumption. Based on data from a large electricity price reform recently conducted in Spain, the authors find clear evidence that consumers do not distinguish between fixed and marginal costs. Impulses to save electricity thus arise only for households with large consumption. As a result, policymakers do not achieve the goal of cost recovery.

Please click here to read a summary kindly provided by the authors.

Labandeira, X., Labeaga, José M., Teixidó, J.J. (2021). Major Reforms in Electricity Pricing: Evidence from a Quasi-Experiment. In: The Economic Journal, 2021;, ueab076,