The universality of the domestic gas subsidy, a mistaken politic

Abstract

Abstract
The subsidiary politics has caused serious economic problems for the state and society in general, the government allocates significant amounts to the subsidy, this document seeks to focus the subsidy on liquefied petroleum gas in Ecuador, for the first and second quintile of the population, does it by defining it in technical and convenience terms for the majority of Ecuadorians, through the analysis of the evolution of a series of data corresponding to the years 2002 - 2022, in order to understand the antecedents that public investment has had in the subsidies and population variables, with information obtained through official sources. It is shown that most of the Liquefied Petroleum Gas (76.10%) is imported and also the unfair distribution that is given to the benefit of the subsidy, since of the 768,660 million assigned for the year 2022, only 169,105 million benefits almost half. of the population, which is located in the first two quintiles of the population, while the 599.554 million, that is, the difference, benefits the population that is able to assume the real cost of this product.
KEY WORDS: Targeting, quintile, subsidy, inequality, renewable energy.