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Horizontal equity effects in energy regulation

Publication ,  Journal Article
Fischer, C; Pizer, WA
Published in: Journal of the Association of Environmental and Resource Economists
March 1, 2019

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.

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Published In

Journal of the Association of Environmental and Resource Economists

DOI

EISSN

2333-5963

ISSN

2333-5955

Publication Date

March 1, 2019

Volume

6

Issue

S1

Start / End Page

S209 / S237

Related Subject Headings

  • 3801 Applied economics
  • 1402 Applied Economics
  • 0599 Other Environmental Sciences
 

Citation

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ICMJE
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Fischer, C., & Pizer, W. A. (2019). Horizontal equity effects in energy regulation. Journal of the Association of Environmental and Resource Economists, 6(S1), S209–S237. https://doi.org/10.1086/701192
Fischer, C., and W. A. Pizer. “Horizontal equity effects in energy regulation.” Journal of the Association of Environmental and Resource Economists 6, no. S1 (March 1, 2019): S209–37. https://doi.org/10.1086/701192.
Fischer C, Pizer WA. Horizontal equity effects in energy regulation. Journal of the Association of Environmental and Resource Economists. 2019 Mar 1;6(S1):S209–37.
Fischer, C., and W. A. Pizer. “Horizontal equity effects in energy regulation.” Journal of the Association of Environmental and Resource Economists, vol. 6, no. S1, Mar. 2019, pp. S209–37. Scopus, doi:10.1086/701192.
Fischer C, Pizer WA. Horizontal equity effects in energy regulation. Journal of the Association of Environmental and Resource Economists. 2019 Mar 1;6(S1):S209–S237.
Journal cover image

Published In

Journal of the Association of Environmental and Resource Economists

DOI

EISSN

2333-5963

ISSN

2333-5955

Publication Date

March 1, 2019

Volume

6

Issue

S1

Start / End Page

S209 / S237

Related Subject Headings

  • 3801 Applied economics
  • 1402 Applied Economics
  • 0599 Other Environmental Sciences