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Ítem Welfare implications of a tax on electricity consumption for colombian households : why not to progressively discriminatethe market?(Universidad Eafit, 2020) López Vera, Cristian Alejandro; Ramírez Hassan, AndrésThis paper analyses the Colombian household utilities demand using the exact affine Stone index demand system to estimate the price and expenditure elasticities. We use this framework to analyzed the welfare implications of a new tax on electricity demand of households in strata 4, 5 and 6 implemented to safe from drastic electricity disruptions the northwestern Colombian region. So, we propose a new progressive tax rule that minimizes welfare losses while maintaining the target of average tax revenues