Zhang, Fan2012-03-192012-03-192011-10-01https://hdl.handle.net/10986/3595A 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.CC BY 3.0 IGOACCESS TO ELECTRICITYAGGREGATE DEMANDAGRICULTURAL ECONOMICSAIR CONDITIONERSAPPROACHAVAILABILITYAVERAGE PRICEBENCHMARKCARBONCARBON TAXCLIMATECLIMATE CHANGECONDITIONAL DEMANDCONSUMER SURPLUSCONSUMPTION LEVELSCONSUMPTION PATTERNSDEMAND ANALYSESDEMAND ANALYSISDEMAND CURVEDEMAND FOR ELECTRICITYDEMAND FORECASTINGDEMAND FUNCTIONDEMAND FUNCTIONSDEMAND RESPONSEDEVELOPMENT POLICYDISPOSABLE INCOMEDISTRIBUTION COMPANYDISTRIBUTIONAL IMPACTSECONOMIC EFFECTSECONOMIC RESEARCHECONOMIC STATISTICSELECTRIC POWERELECTRIC SPACE HEATINGELECTRIC UTILITIESELECTRICITYELECTRICITY BILLSELECTRICITY CONSUMPTIONELECTRICITY DEMANDELECTRICITY DISTRIBUTIONELECTRICITY MARKETSELECTRICITY PRICEELECTRICITY PRICESELECTRICITY PRICINGELECTRICITY PRODUCTIONELECTRICITY SECTORELECTRICITY SUPPLYELECTRICITY TARIFFELECTRICITY TARIFFSELECTRICITY USAGEELECTRICITY UTILITYEMPLOYMENTEND-USEENERGY BILLSENERGY CONSUMPTIONENERGY DEMANDENERGY ECONOMICSENERGY EFFICIENCYENERGY INTENSIVEENERGY MARKETENERGY PRICEENERGY PRICESENERGY PRICINGENERGY SAVINGSENERGY SECURITYENERGY SUPPLYENVIRONMENTAL COSTSEXOGENOUS VARIABLESEXPENDITUREEXPENDITURESFINANCIAL LOSSFUELFUEL COSTSFUELSFUTURE RESEARCHGENERATIONHIGHER ENERGY PRICESHOUSEHOLD ELECTRICITY CONSUMPTIONHOUSEHOLD SECTORIMPACT ANALYSISINCOMEINCOME DISTRIBUTIONINCOME GROUPSINCOME LEVELSINFLATIONINSURANCEINVENTORYLABOR MARKETSLAND ECONOMICSLIVING STANDARDSLOWER INCOME HOUSEHOLDSMARGINAL PRICEMARGINAL UTILITYMARKET DEMANDMARKET REFORMNATURAL GASNATURAL GAS PRICESNORMAL GOODPARTIAL EQUILIBRIUM ANALYSISPER CAPITA INCOMEPORTFOLIOPOWERPRICE CHANGEPRICE CHANGESPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRICE INCREASEPRICE INCREASESPRICE OF ELECTRICITYPRICE SCHEDULEPRICE SPIKESPRICE VARIATIONPRICING MECHANISMPRICING MECHANISMSPRICING POLICIESPRICING REFORMREGULATORY POLICYRESIDENTIAL CONSUMERSRESIDENTIAL DEMANDRESIDENTIAL ENERGYRETAILSPACE HEATINGSTATISTICAL ANALYSISSUBSTITUTESURPLUSSUSTAINABLE ENERGYTARIFF DESIGNTARIFF STRUCTUREUNDERESTIMATESVERTICAL AXISWELFARE ANALYSISWELFARE LOSSWorld Bank10.1596/1813-9450-5831