Increasing Block Tariff Electricity Pricing and Propensity to Purchase Dirty Fuels: Empirical Evidence from a Natural Experiment

We combine panel household data with the introduction of an increasing block tariffs (IBT) for residential electricity in three experimental regions Russia to analyze relationship between IBT and propensity households purchase dirty fuels. Using a difference-in-differences empirical specification, we find that fuels has increased where schemes were introduced. The size increase varies from 3.8 percentage points full sample 13.4 when restricting do not have access district heating networks.