Book

In the Dark : How Much Do Power Sector Distortions Cost South Asia?

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collection.link.272
https://openknowledge.worldbank.org/handle/10986/20114
collection.name.272
South Asia Development Forum
dc.contributor.author
Zhang, Fan
dc.date.accessioned
2018-12-03T20:35:15Z
dc.date.available
2018-12-03T20:35:15Z
dc.date.issued
2019
dc.description.abstract
Electricity shortages are among the biggest barriers to South Asia’s development. Some 255 million people—more than a quarter of the world’s off-grid population—live in South Asia, and millions of households and firms that are connected experience frequent and long hours of blackouts. Inefficiencies originating in every link of the electricity supply chain contribute significantly to the power deficit. Three types of distortions lead to most of the inefficiencies: institutional distortions caused by state ownership and weak governance; regulatory distortions resulting from price regulation, subsidies, and cross-subsidies; and social distortions (externalities) causing excessive environmental and health damages from energy use. Using a common analytical framework and covering all stages of power supply, In the Dark identifies and estimates how policy-induced distortions have affected South Asian economies. The book introduces two innovations. First, it goes beyond fiscal costs, evaluating the impact of distortions from a welfare perspective by measuring the impact on consumer wellbeing, producer surplus, and environmental costs. And second, the book adopts a broader definition of the sector that covers the entire power supply chain, including upstream fuel supply and downstream access and reliability. The book finds that the full cost of distortions in the power sector is far greater than previously estimated based on fiscal cost alone: The estimated total economic cost is 4–7 percent of the gross domestic product in Bangladesh, India, and Pakistan. Some of the largest costs are upstream and downstream. Few other reforms could quickly yield the huge economic gains that power sector reform would produce. By expanding access to electricity and improving the quality of supply, power sector reform would also directly benefit poor households. The highest payoffs are likely to come from institutional reforms, expansion of reliable access, and the appropriate pricing of carbon and local air pollution emissions.
en
dc.identifier.isbn
978-1-4648-1154-8
dc.identifier.uri
http://hdl.handle.net/10986/30923
dc.language
English
dc.publisher
Washington, DC: World Bank
dc.relation.ispartofseries
South Asia Development Forum;
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
POWER SECTOR
dc.subject
ENERGY
dc.subject
ELECTRICITY
dc.subject
DISTORTIONS
dc.subject
INSTITUTIONS
dc.subject
REGULATION
dc.subject
SOCIAL COST
dc.subject
POWER SECTOR REFORM
dc.subject
ELASTICITY
dc.subject
EFFICIENCY
dc.title
In the Dark
en
dc.title.subtitle
How Much Do Power Sector Distortions Cost South Asia?
en
dc.type
Book
en
okr.date.disclosure
2018-12-11
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Publication
okr.externalurl
www.worldbank.org/inthedark
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/978-1-4648-1154-8
okr.identifier.internaldocumentum
211154
okr.identifier.report
132854
okr.imported
true
en
okr.language.supported
en
okr.region.administrative
South Asia
okr.region.country
Bangladesh
okr.region.country
India
okr.region.country
Pakistan
okr.region.geographical
South Asia
okr.topic
Energy :: Electric Power
okr.topic
Energy :: Energy Markets
okr.topic
Energy :: Energy Policies & Economics
okr.topic
Energy :: Energy Privatization
okr.topic
Energy :: Energy Sector Regulation
okr.unit
SARCE

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