Ukraine gas pricing policy : distributional consequences of tariff increases / prepared by Pritha Mitra and Ruben Atoyan.

By:

Mitra, Pritha, 1974-

Contributor(s):

Atoyan, Ruben (Ruben V.)

Material type: Text

text

Media type:

computer

Carrier type:

online resource

ISBN:

9781475512908
1475512902
1475512872
9781475512878
1475512880
9781475512885

Subject(s):

Genre/Form:

DDC classification:

333.8233 23

LOC classification:

HD9581.U38 M58 2012eb

Online resources:

Click here to access online

Contents:

Cover; Abstract; Contents; A. Introduction; B. Stylized Facts: Economic Implications of Gas Sector Subsidies; C. Theory: Implications of Higher Gas and Heating Tariffs; D. Model; E. Results; F. Conclusions; Tables; 1. Summary Statistics; 2. Determinants of Heating Demand; 3. Determinants of Gas Demand; Bibliography.

Abstract: Ukraine's gas pricing policy subsidizes gas and heating for all households. As the cost of imported gas rises, this policy increasingly weighs on government finances, sustains energy over-consumption, dampens investment in delivery systems, and undermines incentives for domestic production. However, gas price hikes have been deferred to the medium-term as they are politically unpopular. Through estimation of household demand functions by income quintiles to evaluate the distributional consequences of tarrif reform, this paper finds that tariff reforms combined with targeted social support can address the economic inefficiencies of the current pricing policy without large welfare costs to the lower income segments of the population.

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Includes bibliographical references.

Ukraine's gas pricing policy subsidizes gas and heating for all households. As the cost of imported gas rises, this policy increasingly weighs on government finances, sustains energy over-consumption, dampens investment in delivery systems, and undermines incentives for domestic production. However, gas price hikes have been deferred to the medium-term as they are politically unpopular. Through estimation of household demand functions by income quintiles to evaluate the distributional consequences of tarrif reform, this paper finds that tariff reforms combined with targeted social support can address the economic inefficiencies of the current pricing policy without large welfare costs to the lower income segments of the population.