Effect of the price of electricity in mexican households with a gender perspective and poverty status

Abstract

If the electricity price increases the consumers lose purchasing power. The real disposable income is reduced due to an increase of price level and the possible decline in economic activity. This study documents the construction of a SAM for Mexico with a gender approach and poverty condition, and based on it, a general equilibrium model, which portrays the mechanism of the circular flow of income, is formulated to examine the potential impact of racing electricity price. The main results suggest that female-headed households are likely to be more severely affected than male-headed households if households are poor.