NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Horizontal Equity Effects in Energy Regulation

Carolyn Fischer, William A. Pizer

NBER Working Paper No. 24033
Issued in November 2017, Revised in July 2018
NBER Program(s):The Environment and Energy Program

Choices in energy regulation, particularly whether and how to price externalities, can have widely different distributional consequences both across and within income groups. Traditional welfare theory focuses largely on effects across income groups; such “vertical equity” concerns can typically be addressed by a progressive redistribution of emissions revenues. In this paper, we review alternative economic perspectives that give rise to equity concerns within income groups, or “horizontal equity,” and suggest operational measures. We then apply those measures to a stylized model of pollution regulation in the electricity sector. In addition, we look for ways to present the information behind those measures directly to stakeholders. We show how horizontal equity concerns might overshadow efficiency concerns in this context.

download in pdf format
   (573 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w24033

Published:

Users who downloaded this paper also downloaded* these:
Muehlegger and Sweeney w24025 Pass-Through of Input Cost Shocks Under Imperfect Competition: Evidence from the U.S. Fracking Boom
Chandra and Staiger w24035 Identifying Sources of Inefficiency in Health Care
Chen, Oliva, and Zhang w24036 The Effect of Air Pollution on Migration: Evidence from China
Lade and Rudik w24139 Costs of Inefficient Regulation: Evidence from the Bakken
Hassan, Hollander, van Lent, and Tahoun w24029 Firm-Level Political Risk: Measurement and Effects
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us