Impacto en el bienestar de los hogares por una eliminación del subsidio al gas doméstico: caso Ecuador para el año 2012

Abstract

The aim of this work is to quantitatively determine the impact on household welfare by a hypothetical total elimination of the subsidy on cooking gas, through the estimation of price elasticity’s, income and welfare measurement in Ecuador. To this end, the National Household Income and Expenditure Survey Urban and Rural ( ENIGUR ) of 2012, because it contains the latest information on current monetary and non-monetary income information, current monetary and non-monetary costs are used, and socio -demographic variables Ecuadorian households. Initially elasticity income (expense) demand of domestic gas was estimated using a log-log regression with which we obtained evidence to contrast the liquefied petroleum gas (LPG) is a normal good necessary for households by deciles of monetary expenditure. Similarly, the price elasticity of demand for domestic gas was estimated by the indirect method of proving Frisch certainly that LPG has an inelastic demand for families by deciles of spending money. Once the above elasticity’s estimated the relevant welfare analysis was performed, considering the variation in consumption of LP gas and was performed by Slutsky price elasticity compensated. With this estimate we obtained evidence to we confirm that the removal of the subsidy on cooking gas hits hardest at the families of the deciles with incomes as they will be obliged, stop using gas and while higher-income households reduce their consumption LP gas in smaller amounts. Finally, the measurement of the effects of varying the price of domestic gas in household welfare consumer surplus confirmed the results , before this public measure , which caused the loss of welfare is relatively higher in the homes of expenditure deciles relatively lower and lower in the homes of the highest expendituredeciles.