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Electricity Pricing and Subsidy for Energy Conservation in Developing Country: Evidence from Natural Experiment

Research Project

Project/Area Number 20K13498
Research Category

Grant-in-Aid for Early-Career Scientists

Allocation TypeMulti-year Fund
Review Section Basic Section 07040:Economic policy-related
Research InstitutionWaseda University

Principal Investigator

DENDUP Ngawang  早稲田大学, 政治経済学術院, 講師(任期付) (00844549)

Project Period (FY) 2020-04-01 – 2024-03-31
Project Status Completed (Fiscal Year 2023)
Budget Amount *help
¥4,160,000 (Direct Cost: ¥3,200,000、Indirect Cost: ¥960,000)
Fiscal Year 2022: ¥520,000 (Direct Cost: ¥400,000、Indirect Cost: ¥120,000)
Fiscal Year 2021: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2020: ¥2,730,000 (Direct Cost: ¥2,100,000、Indirect Cost: ¥630,000)
Keywordselectricity / nonlinear price / welfare / social engagement / social interactions / instrumental variables / difference-in-difference / demand / marginal price / average price / subsidy / Nonlinear price / Margina price / block pricing / inefficiency / Electricity / Block Pricing / Developing Country / Emission / Subsidy
Outline of Research at the Start

The electricity consumption in developing countries are increasing and emission from electricity plants are also expected to increase. I use regression discontinuity design to examine if households respond to increasing block price structure, investigates if electricity subsidy can induce conservation and finally, examine the impact of subsidy on electrical appliance ownership.

Outline of Final Research Achievements

I wrote two papers using data collected for the research project:
1. "Short-run Impact of Electricity on Social Capital: Evidence from a Rural Electricity Program". This paper has received conditional acceptance from the prestigious journal Empirical Economics, and I hope it will be published soon.
2. "Designing Nonlinear Electricity Pricing with Misperceptions: Evidence from Free Electricity Policy". This paper is still a work in progress. We plan to complete it this year and submit it to a top economics journal.

Academic Significance and Societal Importance of the Research Achievements

Access to electricity in developing countries is increasing. Effective pricing mechanisms are crucial to achieving environmental and developmental goals. This study examines the welfare effects of nonlinear pricing and the impact of electricity on social engagement and interactions.

Report

(5 results)
  • 2023 Annual Research Report   Final Research Report ( PDF )
  • 2022 Research-status Report
  • 2021 Research-status Report
  • 2020 Research-status Report
  • Research Products

    (2 results)

All 2023

All Presentation (2 results) (of which Int'l Joint Research: 1 results)

  • [Presentation] Designing Nonlinear Electricity Pricing with Misperceptions: Evidence from Free Electricity Policy2023

    • Author(s)
      Ngawang Dendup
    • Organizer
      Australian Conference Economist 2023
    • Related Report
      2023 Annual Research Report
    • Int'l Joint Research
  • [Presentation] Designing Nonlinear Electricity Pricing with Misperceptions: Evidence from Free Electricity Policy2023

    • Author(s)
      Ngawang Dendup
    • Organizer
      Asian Economic Development Conference 2023
    • Related Report
      2023 Annual Research Report

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Published: 2020-04-28   Modified: 2025-01-30  

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