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Effect of electricity price reform on households’ electricity consumption in urban Ethiopia by Sied Hassen; Abebe D. Beyene; Marc Jeuland; Alemu Mekonnen; Tensay Hadush Meles; Samuel Sebsibie; Thomas Klug; Subhrendu K. Pattanayak; Michael A. Toman is a Engineering article available to read on EtoBox.
What is Effect of electricity price reform on households’ electricity consumption in urban Ethiopia about?
Until recently, the price of electricity in Ethiopia was among the lowest in the world. Such low prices have contributed to a substantial financial deficit for the government-owned electric utility and led to a degradation in the quality of electricity services delivered to customers. In December 2018, the utility increased the electricity tariff to help to finance improvements in the quality of electricity services. This paper studies the effect of the revised tariff on urban household electricity consumption and alternative fuel expenditure. The study relied on two rounds of household survey data and six years of electricity consumption data from the utility company. The study finds that prepaid customers reduced their electricity consumption by about 22 kWh per month in the post-tariff-adjustment periods, equivalent to about 10% of electricity expenditure and 14% of daily consumption. In the overall sample, however, consumption slightly increased over time. These results imply that the price elasticity of demand for electricity in urban Ethiopia is highly inelastic. Moreover, households did not shift substantially toward the use of alternative fuels. The findings indicate that g
Who reads Effect of electricity price reform on households’ electricity consumption in urban Ethiopia?
It is typically read by researchers, students, and practitioners in Engineering.
- Author
- Sied Hassen; Abebe D. Beyene; Marc Jeuland; Alemu Mekonnen; Tensay Hadush Meles; Samuel Sebsibie; Thomas Klug; Subhrendu K. Pattanayak; Michael A. Toman
- Publisher
- Elsevier BV
- Published
- 2022
- Language
- EN
- Field
- Engineering (Physical Sciences)