Low-income households are hit through multiple channels: (i) high electricity spending as a share of income, (ii) low demand elasticity, (iii) limited ability to increase earnings.
As a result they (iv) have higher default risk and (v) must reduce residual consumption further /9
As a result they (iv) have higher default risk and (v) must reduce residual consumption further /9
Comments
More in the paper. We're happy to hear your thoughts and comments!
The CEPR working paper is found here: https://cepr.org/publications/dp19972
Ungated version is here:
https://drive.google.com/file/d/1ZBJokwrA-nvaMRQH47WojYDoGjKeLmHr/view