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

2021 Fiscal Year Research-status Report

• Project/Area Number: 20K13498
• Research Institution: Waseda University
• Principal Investigator: Dendup Ngawang 早稲田大学, 政治経済学術院, 助教 (00844549)
• Project Period (FY): 2020-04-01 – 2023-03-31
• Keywords: Nonlinear price / average price / marginal price / electricity / subsidy

Outline of Annual Research Achievements

I completed a household survey to match electricity consumption data with census data. In addition, I have completed estimating price elasticity using using IV regression following the Ito(2014, AER). I have also completed writing and testing the economic model and I am currently in the process of testing and estimating the parameters of economic model.

Current Status of Research Progress

2: Research has progressed on the whole more than it was originally planned.

Reason

I am progressing well because I am able to hire good research assistant and also getting proper guide from seniors whenever I need help.

Strategy for Future Research Activity

One of the problem I faced is that my data do not very strong pretrend and I could not examine the heterogenous effect by low and high consumption households. In order to address this problem, I now follow structural approach by classifying households into marginal, average and confused type following Shaffer (2020). Therefore, my immediate plan is to estimate the parameters of economic model by taking account of types of consumers. At the same time, I am writing the paper and compling the results. It my plan to complete writing the paper by the end of March 2023 and submit the paper for publication.

Causes of Carryover

Last year, my RA could not work some months and weeks for the personal reasons as agreed earlier. Further, due to covid I could not make any travels. I plan to use for hiring research assistant.