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100 _aLevinson, Arik and Silva,Emilson
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245 _aThe electric Gini: Income redistribution through energy prices
260 _aAmerican Economic Journal: Economic Policy
300 _a14(2), May, 2022: p.341-365
520 _aIn theory, regulators concerned about inequality will deviate from efficient two-part tariffs, charging lower-than-efficient fixed monthly fees and higher-than-efficient per-kilowatt-hour prices. To quantify that relationship, we develop a measure of the redistributive extent of utility tariffs: the "electric Gini." Utilities with higher electric Ginis shift more costs from households using relatively little electricity to households using more. In practice, US utilities whose ratepayers have more unequal incomes have higher electric Ginis. But electricity demand is only loosely correlated with income, which means that electricity prices are an indirect and ineffective policy for countering income inequality. – Reproduced
773 _aAmerican Economic Journal: Economic Policy
906 _aINCOME DISTRIBUTION
942 _cAR