Cost Recovery and Financial Viability of the Power Sector in Developing Countries: A Literature Review Huenteler, Joern Dobozi, Istvan Balabanyan, Ani Banerjee, Sudeshna Ghosh 2017-12-21T20:57:46Z 2017-12-21T20:57:46Z 2017-12
dc.description.abstract The financial viability of the power sector is a prerequisite for attracting the investment needed to ensure reliable energy supply, meet universal access targets, and hasten the clean energy transition. Adequate pricing of electricity to allow for cost recovery is also important to minimize the power sector’s negative macroeconomic, fiscal, environmental, and social impacts. This paper takes stock of the empirical and conceptual literature on the financial viability and cost recovery of the power sector in developing countries. Time-series data across countries are relatively scarce, but comparing the findings from 21 studies suggests that under-recovery of costs remains pervasive despite decades of efforts by governments and development institutions. Large electricity subsidies continue to burden governments, especially in the Middle East, South Asia, Central Asia, and Sub-Saharan Africa. Reviews by the World Bank and International Monetary Fund on outcomes of their own engagement also conclude that progress on cost recovery in supported countries has been limited. Although the aggregated view obscures fluctuation within individual countries over time, the available evidence suggests that countries progressing toward cost recovery may find themselves backsliding within a few years. As for understanding the circumstances under which progress can be made, a handful of studies point toward a correlation between sector reforms and cost recovery, although few of the studies address obvious endogeneity problems. To provide more solid guidance for future efforts to improve cost recovery, more research is needed on: (i) the determinants and enabling conditions of progress on cost recovery; (ii) tariff reform sequencing; and (iii) institutional arrangements, policies, and regulations that enable countries to sustain cost recovery once it is reached. en
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 8287
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.subject POWER SECTOR
dc.subject TARIFFS
dc.subject COST RECOVERY
dc.subject SUBSUDIES
dc.title Cost Recovery and Financial Viability of the Power Sector in Developing Countries en
dc.title.subtitle A Literature Review en
dc.type Working Paper en
dc.type Document de travail fr
dc.type Documento de trabajo es
dspace.entity.type Publication
okr.crossref.title Cost Recovery and Financial Viability of the Power Sector in Developing Countries: A Literature Review 2017-12-20
okr.doctype Publications & Research
okr.doctype Publications & Research :: Policy Research Working Paper
okr.identifier.doi 10.1596/1813-9450-8287
okr.identifier.externaldocumentum 090224b08547443d_2_0
okr.identifier.internaldocumentum 29290767 WPS8287
okr.imported true en
okr.language.supported en
okr.pdfurl en
okr.statistics.combined 6569
okr.statistics.dr 896141513777558023
okr.statistics.drstats 4287
okr.topic Energy :: Electric Power
okr.topic Energy :: Energy Policies & Economics
okr.topic Poverty Reduction :: Services & Transfers to Poor
okr.unit Energy and Extractives Global Practice
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relation.isAuthorOfPublication 4ce1f899-ff9c-5b54-966e-dd0e07496330
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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