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http://dx.doi.org/10.15266/KEREA.2019.28.4.527

A Study on the Analysis of Energy Voucher Effects Using Micro-household Data  

Lee, Eun Sol (Global Sustainable Development Economic Institute, Sunmoon University)
Park, Kwang Soo (Korea Energy Economics Institute)
Lee, Yoon (Dept. of International Economics & Trade, Sunmoon University)
Yoon, Tae Yeon (Dept. of International Economics & Trade, Sunmoon University)
Publication Information
Environmental and Resource Economics Review / v.28, no.4, 2019 , pp. 527-556 More about this Journal
Abstract
In Korea, nearly 100 billion won is spent annually under the name of energy voucher on 600,000 households for the last five years, and this is a unique case and hard to monitor worldwide. Therefore, no studies have been conducted to assess impacts of the energy voucher on energy consumption and cost burden alleviation for beneficiaries. This paper aims to demonstrate the effectiveness of energy vouchers in terms of energy expense. The propensity score matching was conducted on samples of low-income households based on the Korea Welfare Panel. Then, simple Difference-In-Differences and Fixed-Effect Difference-In-Differences models were applied to estimate the effect of energy vouchers. In results, the beneficiaries of energy vouchers would spend an additional 4,371~4,870 won per month on energy consumption. The ratio is equivalent to 51.9~57.7 percent of the aid, which is also the highest when compared with 23~56 percent of U.S. Food Stamp. In terms of energy welfare, voucher payment could become one of the best management practices. However, identifying the blind spots as non-reciprocal households and expanding the differential support mechanism that reflects the energy consumption environment should be solved in the future.
Keywords
Energy Voucher; Energy Poverty; Korea Welfare Panel; Propensity Score Matching(PSM); Difference-In-Differences(DID);
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