Target efficiency of lifeline electricity pricing and other energy subsidy programs: a survey-based policy analysis

Thesis/Dissertation · Mon Dec 31 23:00:00 EST 1984

OSTI ID:5405137

Toulmin, L M

This dissertation evaluates three types of subsidy programs designed to aid low-income residential electricity customers. The three programs are a lifeline rate system, which extends a lifeline of 450 kWh per month of low-cost electricity to consumers for essential uses: a payments to suppliers program; and a price discount program. Using a telephone survey of nine hundred District of Columbia residents, the study employs a path analysis, calculations of income elasticities, and estimates of the number of poor and nonpoor customers consuming above and below the lifeline breakpoint to evaluate the horizontal and vertical equity of the three programs. The path analysis utilizes twelve independent variables: appliance stock; insulation quality; conservation attitude; physical size of dwelling; number of persons home during the day; household size; age, sex, race, and education of billpayer; home ownership; and annual household income. The dependent variable is annual kWh consumption. The path analysis shows that the direct effect of income on kWh consumption is 0.225 (standardized beta weight), and the indirect effect is 0.105. Rating the three programs in terms of vertical and horizontal equity shows that all programs have substantial drawbacks. Recommendations include the abolition of the lifeline and price discount programs, the alteration of the payments to suppliers program to include more program eligibles, and the changing of the payments to suppliers program into a direct cash grant program.

• Research Organization: American Univ., Washington, DC
• OSTI ID: 5405137
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
ELECTRIC POWER
ENERGY SUPPLIES
FINANCIAL INCENTIVES
HUMAN POPULATIONS
LOW INCOME GROUPS
MANAGEMENT
MINORITY GROUPS
POPULATIONS
POWER
PRICES
PROGRAM MANAGEMENT
RECOMMENDATIONS
SUBSIDIES
SURVEYS