Hahn, Robert W.; Metcalfe, Robert D. - 2022
Rates for Energy (CARE). CARE provides a price reduction for low-income consumers of natural gas and electricity. Using a … natural field experiment, we estimate the price elasticity of demand for natural gas to be about -0.35 for CARE customers. An … economic model of this subsidy yields three results. First, the natural gas subsidy appears to reduce welfare. Second, the …