Efficiency and equity effects of electricity metering: evidence from Colombia
S McRae - Available at SSRN 4801287, 2024 - papers.ssrn.com
Many households in developing countries pay a fixed amount for their public utilities that
does not depend on their consumption. This may lead to inefficiently high consumption and
inequitable cost allocation. I study the change from fixed to volumetric tariffs for nearly
100,000 newly metered households in Colombia between 2010 and 2019. Consumption
drops more than 25 percent after metering. However, this effect is heterogeneous across
households, with the largest drop for high consumers. Individual metering increases …
does not depend on their consumption. This may lead to inefficiently high consumption and
inequitable cost allocation. I study the change from fixed to volumetric tariffs for nearly
100,000 newly metered households in Colombia between 2010 and 2019. Consumption
drops more than 25 percent after metering. However, this effect is heterogeneous across
households, with the largest drop for high consumers. Individual metering increases …
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