Publication:
The Distributional Incidence of Residential Water and Electricity Subsidies

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dc.contributor.authorKomives, Kristin
dc.contributor.authorHalpern, Jonathan
dc.contributor.authorFoster, Vivien
dc.contributor.authorWodon, Quentin
dc.contributor.authorAbdullah, Roohi
dc.date.accessioned2012-06-21T21:23:21Z
dc.date.available2012-06-21T21:23:21Z
dc.date.issued2006-04
dc.description.abstractSubsidies to residential utility customers are popular among policymakers, utility managers, and utility customers alike, but they are nonetheless the subject of much controversy. Utility subsidies are seen as a way to help make utility service affordable for poor households and as an alternative mechanism for income redistribution. These arguments in favor of subsidies are countered by serious concerns about their adverse effects on consumer behavior, utility operations, and the financial health of utilities. Both the affordability and redistributive arguments for subsidies are based on the presumption that poor households benefit disproportionately from water and electricity subsidies, that they are well-targeted to the poor. The authors test this assumption by examining the extent to which the poor benefit from consumption and connection subsidies for water and electricity services. Their analysis of a wide range of subsidy models from around the developing world shows that the most common form of utility subsidy-quantity-based subsidies delivered through the tariff structure-are highly regressive. Geographically targeted or means-tested subsidies do better, and in many cases have a progressive incidence, but large numbers of poor households remain excluded. Low levels of coverage and metering severely limit the effectiveness of consumption subsidy schemes to reach the poor. Simulations suggest that connection subsidies are an attractive alternative for low coverage areas, but only if utilities have the means and motivation to extend network access to poor households and only if those households choose to connect.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/04/6708395/distributional-incidence-residential-water-electricity-subsidies
dc.identifier.doi10.1596/1813-9450-3878
dc.identifier.urihttps://hdl.handle.net/10986/8731
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3878
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVERSE CONSEQUENCES
dc.subjectADVERSE EFFECTS
dc.subjectAPPROACH
dc.subjectBLOCK TARIFFS
dc.subjectCONNECTED HOUSEHOLDS
dc.subjectCONNECTION
dc.subjectCONNECTION CHARGE
dc.subjectCONNECTION CHARGES
dc.subjectCONNECTION RATE
dc.subjectCONNECTION SUBSIDY
dc.subjectCONNECTIONS
dc.subjectCONSUMER BEHAVIOR
dc.subjectCONSUMERS
dc.subjectCONSUMPTION INCREASES
dc.subjectCONSUMPTION LEVELS
dc.subjectCOST RECOVERY
dc.subjectCUBIC METER
dc.subjectCUBIC METERS
dc.subjectCUBIC METERS OF WATER
dc.subjectCUBIC METERS PER MONTH
dc.subjectDISTRIBUTION OF BENEFITS
dc.subjectELECTRICITY
dc.subjectELECTRICITY CONSUMPTION
dc.subjectELECTRICITY PRICES
dc.subjectELECTRICITY TARIFF
dc.subjectELECTRICITY TARIFFS
dc.subjectELECTRICITY UTILITIES
dc.subjectEMPLOYMENT
dc.subjectENERGY SOURCES
dc.subjectESP
dc.subjectFINANCIAL VIABILITY
dc.subjectFIXED CHARGE
dc.subjectFIXED CHARGES
dc.subjectGRID EXTENSION
dc.subjectHIGH-VOLUME CONSUMERS
dc.subjectHOUSEHOLDS
dc.subjectINCOME
dc.subjectINEFFICIENCY
dc.subjectKILOWATT-HOURS
dc.subjectMAINTENANCE COSTS
dc.subjectMETERING
dc.subjectMONTHLY CHARGE
dc.subjectPAYMENT OF BILLS
dc.subjectPER CAPITA INCOMES
dc.subjectPERFORMANCE INDICATORS
dc.subjectPOWER
dc.subjectPRICE SUBSIDIES
dc.subjectPRICE SUBSIDY
dc.subjectPUBLIC TAP
dc.subjectPUBLIC TAPS
dc.subjectPUBLIC WATER
dc.subjectQUANTITY OF WATER
dc.subjectRESIDENTIAL CUSTOMERS
dc.subjectRESIDENTIAL WATER
dc.subjectSENSITIVITY ANALYSIS
dc.subjectSERVICE PROVISION
dc.subjectSERVICE QUALITY
dc.subjectSOFT BUDGET CONSTRAINTS
dc.subjectTARIFF STRUCTURE
dc.subjectTARIFF STRUCTURES
dc.subjectUNDERESTIMATES
dc.subjectURBAN AREA
dc.subjectUSE OF WATER
dc.subjectUSERS
dc.subjectUTILITIES
dc.subjectUTILITY BILL
dc.subjectUTILITY MANAGERS
dc.subjectUTILITY OPERATIONS
dc.subjectUTILITY PAYMENTS
dc.subjectUTILITY POLICY
dc.subjectUTILITY SERVICES
dc.subjectVOLTAGE
dc.subjectVOLUMETRIC CHARGE
dc.subjectWATER CONSUMPTION
dc.subjectWATER DEPARTMENT
dc.subjectWATER DISTRIBUTION
dc.subjectWATER DISTRIBUTION NETWORK
dc.subjectWATER SECTOR
dc.subjectWATER SERVICE
dc.subjectWATER SERVICES
dc.subjectWATER SUBSIDY
dc.subjectWATER SUPPLY
dc.subjectWATER TARIFFS
dc.subjectWATER UTILITIES
dc.titleThe Distributional Incidence of Residential Water and Electricity Subsidiesen
dspace.entity.typePublication
okr.crossref.titleThe Distributional Incidence Of Residential Water And Electricity Subsidies
okr.date.doiregistration2025-04-10T10:35:43.223658Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/04/6708395/distributional-incidence-residential-water-electricity-subsidies
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeGovernance
okr.globalpracticeWater
okr.globalpracticeEnergy and Extractives
okr.guid635531468153872851
okr.identifier.doi10.1596/1813-9450-3878
okr.identifier.externaldocumentum000012009_20060405124412
okr.identifier.internaldocumentum6708395
okr.identifier.reportWPS3878
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/04/05/000012009_20060405124412/Rendered/PDF/wps38780rev0pdf.pdfen
okr.topicEconomic Theory and Research
okr.topicWater Supply and Sanitation::Town Water Supply and Sanitation
okr.topicWater Supply and Sanitation::Urban Water Supply and Sanitation
okr.topicLaw and Development::Tax Law
okr.topicEnergy::Energy Production and Transportation
okr.topicMacroeconomics and Economic Growth
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication059954cc-a249-5318-9829-61a08ded2637
relation.isAuthorOfPublication145013f5-76a3-5525-874a-d3ab1b1db9c5
relation.isAuthorOfPublication.latestForDiscovery145013f5-76a3-5525-874a-d3ab1b1db9c5
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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