An Econometric Study of Illegal Electricity Connections in the Urban Favelas of Belo Horizonte, Brazil

The data from the project "Conviver," launched in 2006 in Belo Horizonte (Brazil), provides a unique opportunity to study illegal electricity connections. Based on an original dataset of 15,279 low-income households, this paper studies the incidence and determinants of illegality in the co...

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Main Authors:	Mimmi, Luisa M., Ecer, Sencer
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Electric Utilities L940 Industry Studies: Utilities and Transportation: Government Policy L980 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Energy: Demand and Supply Q410 Energy: Government Policy Q480
Online Access:	http://hdl.handle.net/10986/4778

id	okr-10986-4778
recordtype	oai_dc
spelling	okr-10986-47782021-04-23T14:02:19Z An Econometric Study of Illegal Electricity Connections in the Urban Favelas of Belo Horizonte, Brazil Mimmi, Luisa M. Ecer, Sencer Electric Utilities L940 Industry Studies: Utilities and Transportation: Government Policy L980 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Energy: Demand and Supply Q410 Energy: Government Policy Q480 The data from the project "Conviver," launched in 2006 in Belo Horizonte (Brazil), provides a unique opportunity to study illegal electricity connections. Based on an original dataset of 15,279 low-income households, this paper studies the incidence and determinants of illegality in the context of low-income urban favelas. The probability of engaging in illegal behavior is explained not just by low income, but by a combination of concurring factors: sub-standard energy provision and equipment; inefficient/incorrect use of domestic electric appliances and running an informal in-house business. These recurrent issues in the urban favelas aggravate a sense of exclusion from growth, which is generally recognized as a trigger of illegality. The impact of energy demand on energy-related illegality is carefully analyzed, and different empirical strategies adopted to circumvent some simultaneity problem between both decision processes. The effectiveness of consumption-based energy subsidies is also explored. In spite of some contrary arguments in the literature, in the context of peri-urban slums, such measures may exert a positive impact in mitigating illegal access and use of energy. Effectiveness will be enhanced by accompanying measures such as: perceivable improvements of equipment, metering and maintenance, promotion of beneficiaries' awareness of energy usage, and energy-saving behaviors. 2012-03-30T07:29:42Z 2012-03-30T07:29:42Z 2010 Journal Article Energy Policy 03014215 http://hdl.handle.net/10986/4778 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Brazil
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Electric Utilities L940 Industry Studies: Utilities and Transportation: Government Policy L980 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Energy: Demand and Supply Q410 Energy: Government Policy Q480
spellingShingle	Electric Utilities L940 Industry Studies: Utilities and Transportation: Government Policy L980 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Energy: Demand and Supply Q410 Energy: Government Policy Q480 Mimmi, Luisa M. Ecer, Sencer An Econometric Study of Illegal Electricity Connections in the Urban Favelas of Belo Horizonte, Brazil
geographic_facet	Brazil
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	The data from the project "Conviver," launched in 2006 in Belo Horizonte (Brazil), provides a unique opportunity to study illegal electricity connections. Based on an original dataset of 15,279 low-income households, this paper studies the incidence and determinants of illegality in the context of low-income urban favelas. The probability of engaging in illegal behavior is explained not just by low income, but by a combination of concurring factors: sub-standard energy provision and equipment; inefficient/incorrect use of domestic electric appliances and running an informal in-house business. These recurrent issues in the urban favelas aggravate a sense of exclusion from growth, which is generally recognized as a trigger of illegality. The impact of energy demand on energy-related illegality is carefully analyzed, and different empirical strategies adopted to circumvent some simultaneity problem between both decision processes. The effectiveness of consumption-based energy subsidies is also explored. In spite of some contrary arguments in the literature, in the context of peri-urban slums, such measures may exert a positive impact in mitigating illegal access and use of energy. Effectiveness will be enhanced by accompanying measures such as: perceivable improvements of equipment, metering and maintenance, promotion of beneficiaries' awareness of energy usage, and energy-saving behaviors.
format	Journal Article
author	Mimmi, Luisa M. Ecer, Sencer
author_facet	Mimmi, Luisa M. Ecer, Sencer
author_sort	Mimmi, Luisa M.
title	An Econometric Study of Illegal Electricity Connections in the Urban Favelas of Belo Horizonte, Brazil
title_short	An Econometric Study of Illegal Electricity Connections in the Urban Favelas of Belo Horizonte, Brazil
title_full	An Econometric Study of Illegal Electricity Connections in the Urban Favelas of Belo Horizonte, Brazil
title_fullStr	An Econometric Study of Illegal Electricity Connections in the Urban Favelas of Belo Horizonte, Brazil
title_full_unstemmed	An Econometric Study of Illegal Electricity Connections in the Urban Favelas of Belo Horizonte, Brazil
title_sort	econometric study of illegal electricity connections in the urban favelas of belo horizonte, brazil
publishDate	2012
url	http://hdl.handle.net/10986/4778
_version_	1764392727426891776

An Econometric Study of Illegal Electricity Connections in the Urban Favelas of Belo Horizonte, Brazil

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