TY - GEN
T1 - Price Demand Elasticity and Potential Saving of Electric Subsidies
T2 - 2019 International Conference on Technologies and Policies in Electric Power and Energy, TPEPE 2019
AU - Supriadi, Andri Yudhi
AU - Falianty, Telisa
N1 - Publisher Copyright:
© 2019 IEEE.
PY - 2019/10
Y1 - 2019/10
N2 - The analysis of the potential saving of electric subsidies uses hypothetical assumptions about the removal of subsidies for some of a household with connections 900 VA. The National Socioeconomic Survey (SUSENAS) of March 2017 has been used to analyze the price demand elasticity and the potential saving of electric subsidies. Price demand elasticity was obtained using multiple regression model. The results show that households with an installed capacity of 900 VA are most affected by changes in electricity prices compared to other installed power households. However, the characteristics of the total expenditure are similar to non-subsidized households, namely household with an installed capacity of 1300 VA. Given that 95% of the installed 900 VA households are above the poverty line and still enjoy subsidies, the revocation of subsidies through tariff rationalization will save electricity subsidies of Rp. 29.25 trillion per year. Before the tariff rationalization is performed, the government should conduct field verification on households that receive subsidies to improve the effectiveness of the targeted subsidy policy.
AB - The analysis of the potential saving of electric subsidies uses hypothetical assumptions about the removal of subsidies for some of a household with connections 900 VA. The National Socioeconomic Survey (SUSENAS) of March 2017 has been used to analyze the price demand elasticity and the potential saving of electric subsidies. Price demand elasticity was obtained using multiple regression model. The results show that households with an installed capacity of 900 VA are most affected by changes in electricity prices compared to other installed power households. However, the characteristics of the total expenditure are similar to non-subsidized households, namely household with an installed capacity of 1300 VA. Given that 95% of the installed 900 VA households are above the poverty line and still enjoy subsidies, the revocation of subsidies through tariff rationalization will save electricity subsidies of Rp. 29.25 trillion per year. Before the tariff rationalization is performed, the government should conduct field verification on households that receive subsidies to improve the effectiveness of the targeted subsidy policy.
KW - electricity subsidy
KW - energy public policy
KW - household electricity demand
KW - I3
KW - poverty Theme of conference: Energy Public Policy JEL Classification: D12
UR - http://www.scopus.com/inward/record.url?scp=85086311308&partnerID=8YFLogxK
U2 - 10.1109/IEEECONF48524.2019.9102478
DO - 10.1109/IEEECONF48524.2019.9102478
M3 - Conference contribution
AN - SCOPUS:85086311308
T3 - 2019 International Conference on Technologies and Policies in Electric Power and Energy, TPEPE 2019
BT - 2019 International Conference on Technologies and Policies in Electric Power and Energy, TPEPE 2019
PB - Institute of Electrical and Electronics Engineers Inc.
Y2 - 21 October 2019 through 22 October 2019
ER -
