Bolivia’s domestic electricity cost supporting scheme during COVID-19: Changes in electricity consumption and household welfare

Authors: Nogales, R., Alcaraz, A., López, D., Ravillard, P., Ballón, S., & Carvalho-Hallack, M. 

Journal: Energy Sources, Part B: Economics, Planning, and Policy 

Abstract:

In Autumn 2020, the Bolivian government introduced a scheme to support electricity costs, aiming to alleviate the financial strain of a nationwide lockdown on households. Our study delves into the effects of this policy on electricity consumption and its monetary implications for recipients. Focusing on six major Bolivian cities, we analyze a comprehensive dataset comprising monthly electricity usage records from all meters within these urban centers. Additionally, we examine the distribution of consumption changes and monetary benefits across different demographic segments within each city. Our findings reveal that while absolute reductions in bills predominantly favor households with higher incomes, education levels, and smaller sizes, relative reductions, adjusted for income per capita, favor households with lower incomes, education levels, and larger sizes. From a policy perspective, we emphasize the need for targeted assistance for low-income households to uphold the implicit pro-poor objectives of similar emergency subsidy programs. 

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