Welfare implications of electricity pricing : a case study of Vietnam | |
| Author | Nguyen Nam Thang |
| Call Number | AIT Thesis no. ET-98-16 |
| Subject(s) | Electric utilities--Prices Welfare economics Electric power consumption--Vietnam |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Environment, Resources and Development |
| Publisher | Asian Institute of Technology |
| Abstract | This study was carried out to analyze the Welfare Implication of Electricity Pricing (case study of Vietnam). Welfare Implication have been based on the deadwight loss of comsumer's and producer's surplus, using Ramsey number to investigate the effect of welfare to a change in electricity prices. The electricity demand analysis have been based on econometric models. The electricity demand analysis found out that the electricity demand is inelastic with prices for all sector: residential (-0.2510), industrial (-0.2002) and non-industrial (-0.5274). The electricity demand of residential sector was elastic with income level (2.4 718). The welfare analysis found that all three pncmg options (1997 actual prices, proposed prices with and without cross-subsidy) met the financial constraint of Electricity of Vietnam. The 1997 actual prices caused a welfare loss of 2.85 percent of revenues from electricity sales, while the proposed prices with cross-subsidy will make a loss of 2.16 percent and the proposed prices without any cross-subsidy will cause a loss by 1.48 percent of revenues from electricity sales. It was found that the proposed prices without any cross-subsidy is the best among the projected pricing options. It will cause the lowest welfare loss and the lowest losses in consumer's surplus, also meet the financial constraint. |
| Year | 1998 |
| Type | Thesis |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC)) |
| Academic Program/FoS | Energy Technology (ET) |
| Chairperson(s) | Pacudan, Romeo B.; |
| Examination Committee(s) | Lefevre, Thierry ;Malik, A. S.; |
| Scholarship Donor(s) | European Commission (EC) Directorate General of Energy ; |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 1998 |