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Low Carbon Energy Transition

This document summarizes a paper that analyzes the welfare effects and implications of transitioning to a low-carbon energy system in the Philippines. It will use household expenditure survey data to estimate residential electricity demand for different household groups. It will then calculate the price elasticity of demand for each group. Using this, it will determine the excess burden and financial burden of policies to transition to low-carbon energy, and how much household incomes may change as a percentage. The analysis aims to show which household groups - poor or rich - will be most affected, and which policies can achieve efficient outcomes while minimizing excess burden.

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Miah Maye Pormon
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0% found this document useful (0 votes)
36 views

Low Carbon Energy Transition

This document summarizes a paper that analyzes the welfare effects and implications of transitioning to a low-carbon energy system in the Philippines. It will use household expenditure survey data to estimate residential electricity demand for different household groups. It will then calculate the price elasticity of demand for each group. Using this, it will determine the excess burden and financial burden of policies to transition to low-carbon energy, and how much household incomes may change as a percentage. The analysis aims to show which household groups - poor or rich - will be most affected, and which policies can achieve efficient outcomes while minimizing excess burden.

Uploaded by

Miah Maye Pormon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Low Carbon Energy Transition:

Welfare Effects and Implications


Miah Maye M. Pormon

Introducti
on
According to NEF, 2013, the natural
environment underpins the social
and economic systems.
So in the context of economic and
environmental crisis, what is the role
of our government?

Introducti
on
Climate change... GLOBAL
WARMING
The Philippines
The country is a net energy importer
and a producer of small volumes of oil,
natural gas and coal.

Introductio
n
In 2011, the residential had 28 %
share of the energy demand
consumption in the country.
According to NSCB, there is an
increase from 6.3 % of the 4th
quarter of 2011 to 8.7 % of the 4th
quarter of 2012.

Turning
Green..
The transition to a low-carbon global
economy is a system-wide change.
Almost all sectors of the economy
will be affected.
Who will be the sectors to be
affected? How will these sectors
react from the change?

The switch from these sources, what


could it be its effect on energy
prices?
Who will carry the burden? What
could be the implication for the poor?

This paper will study the welfare


effects of moving towards low carbon
energy and their implications for the
households.
Will the poor be able to gain or loss
from these transition?

Methodology
The paper will be utilizing the most
recent
Household
Expenditure
Survey to estimate the residential
electricity demand for the different
household groups (i.e low, middle
and high).
Then get the price elasticity with
respect to the demand for electricity
for the different household groups.

Price
MCr
MCr + s

MCnr + t
MCn
r

Pd+ C

demand
kW

Price
MCr
MCr + s

MCnr + t
MCn
r

Pd+ C

demand
kW

Price
MCr
MCr + s

MCnr + t
MCn
r

Pd+ C

demand
kW

Getting the excess burden and the


financial burden.
This will determine how much will be
the percentage change in income due
to these policies?

Who will be affected more? The poor


or the rich households?
Which policy will be giving the most
efficient outcome with a little excess
burden?

-EndThank you!

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