This paper exploits unique features of a recently introduced tariff schedule for natural gas in Buenos Aires to estimate the short-run impact of price shocks on residential energy utilization. The schedule induces a nonlinear and non-monotonic relationship between households' accumulated consumption and unit prices, thus generating exogenous price variation, which is exploited in a regression-discontinuity design. The results reveal that a price increase...
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2014/02/01
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Documento de trabalho sobre pesquisa de políticas
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WPS6785
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1
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1
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2014/02/01
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Disclosed
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Does energy consumption respond to price shocks ? evidence from a regression-discontinuity design
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consumption
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