Measuring the Affordability of Basic Public Utility Services in Italy

Giornale degli Economisti e Annali di Economia, Vol. 67, No. 2, July 2008

Posted: 28 Oct 2008

See all articles by Raffaele Miniaci

Raffaele Miniaci

University of Brescia - Department of Economics and Management

Carlo Scarpa

University of Brescia; NERA Economic Consulting

Paola Valbonesi

University of Padua - Department of Economics and Management, DSEA

Date Written: October 26, 2008

Abstract

In this paper we analyze the affordability of water and energy for Italian households. We first document how the regulatory reform has changed the system of price setting, illustrating the dynamics of utility prices and of household expenditure in the period 1998-2005. We then discuss current indices adopted to measure the affordability of public utilities and propose an alternative one, in order to investigate how many households would incur a potentially excessive burden, if they consumed a minimum quantity of utility services.

Finally, we calculate the values of these indices on data from the 'Survey on Family Budgets' over the period, and use them to depict the affordability issue in Italy. Our results show that after the Italian reforms of the Nineties (at least until 2005) the affordability of public utility services has not worsened.

Keywords: Affordability, Public Utilities, Regulation, Gas, Electricity, Water

JEL Classification: D12, L51, L97

Suggested Citation

Miniaci, Raffaele and Scarpa, Carlo and Valbonesi, Paola, Measuring the Affordability of Basic Public Utility Services in Italy (October 26, 2008). Giornale degli Economisti e Annali di Economia, Vol. 67, No. 2, July 2008. Available at SSRN: https://ssrn.com/abstract=1290025

Raffaele Miniaci

University of Brescia - Department of Economics and Management ( email )

Via San Faustino 74B
Brescia, 25122
Italy

Carlo Scarpa

University of Brescia ( email )

Via San Faustino 74B
Dipartimento di Scienze Economiche
25122 Brescia
Italy
+39+030+2988+833 (Phone)
+39+030+2988+839/840 (Fax)

NERA Economic Consulting ( email )

50 Main Street, 14th Floor
White Plains, NY 10606
United States

Paola Valbonesi (Contact Author)

University of Padua - Department of Economics and Management, DSEA ( email )

via Del Santo 33
Padova, 35123
Italy
+39+049+8274058 (Phone)

HOME PAGE: http://www.decon.unipd.it

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