Impacts of a rise in electricity tariff on prices of other products in Vietnam

This study examines the impacts of increasing electricity tariff to the long run marginal cost on prices of other products using a static input–output approach. It is found that such an increase would drive up the prices of all other products. Although the aggregate price impact from such an increase is not large, it would be socially difficult to implement this increase at one time, particularly given that Vietnam is facing high inflation rate. A roadmap for electricity tariff increase is thus discussed.