The Distributional Incidence of Residential Water and Electricity Subsidies

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Komives, Kristin
dc.contributor.author
Halpern, Jonathan
dc.contributor.author
Foster, Vivien
dc.contributor.author
Wodon, Quentin
dc.contributor.author
Abdullah, Roohi
dc.date.accessioned
2012-06-21T21:23:21Z
dc.date.available
2012-06-21T21:23:21Z
dc.date.issued
2006-04
dc.date.lastModified
2017-12-14T08:52:16Z
dc.description.abstract
Subsidies 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.identifier
http://documents.worldbank.org/curated/en/2006/04/6708395/distributional-incidence-residential-water-electricity-subsidies
dc.identifier.uri
http://hdl.handle.net/10986/8731
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper; No. 3878
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
ADVERSE CONSEQUENCES
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ADVERSE EFFECTS
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APPROACH
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BLOCK TARIFFS
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CONNECTED HOUSEHOLDS
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CONNECTION
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CONNECTION CHARGE
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CONNECTION CHARGES
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CONNECTION RATE
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CONNECTION SUBSIDY
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CONNECTIONS
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CONSUMER BEHAVIOR
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CONSUMERS
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CONSUMPTION INCREASES
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CONSUMPTION LEVELS
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COST RECOVERY
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CUBIC METER
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CUBIC METERS
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CUBIC METERS OF WATER
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CUBIC METERS PER MONTH
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DISTRIBUTION OF BENEFITS
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ELECTRICITY
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ELECTRICITY CONSUMPTION
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ELECTRICITY PRICES
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ELECTRICITY TARIFF
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ELECTRICITY TARIFFS
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ELECTRICITY UTILITIES
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EMPLOYMENT
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ENERGY SOURCES
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ESP
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FINANCIAL VIABILITY
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FIXED CHARGE
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FIXED CHARGES
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GRID EXTENSION
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HIGH-VOLUME CONSUMERS
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HOUSEHOLDS
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INCOME
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INEFFICIENCY
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KILOWATT-HOURS
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MAINTENANCE COSTS
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METERING
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MONTHLY CHARGE
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PAYMENT OF BILLS
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PER CAPITA INCOMES
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PERFORMANCE INDICATORS
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POWER
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PRICE SUBSIDIES
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PRICE SUBSIDY
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PUBLIC TAP
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PUBLIC TAPS
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PUBLIC WATER
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QUANTITY OF WATER
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RESIDENTIAL CUSTOMERS
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RESIDENTIAL WATER
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SENSITIVITY ANALYSIS
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SERVICE PROVISION
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SERVICE QUALITY
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SOFT BUDGET CONSTRAINTS
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TARIFF STRUCTURE
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TARIFF STRUCTURES
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UNDERESTIMATES
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URBAN AREA
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USE OF WATER
dc.subject
USERS
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UTILITIES
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UTILITY BILL
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UTILITY MANAGERS
dc.subject
UTILITY OPERATIONS
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UTILITY PAYMENTS
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UTILITY POLICY
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UTILITY SERVICES
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VOLTAGE
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VOLUMETRIC CHARGE
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WATER CONSUMPTION
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WATER DEPARTMENT
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WATER DISTRIBUTION
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WATER DISTRIBUTION NETWORK
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WATER SECTOR
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WATER SERVICE
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WATER SERVICES
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WATER SUBSIDY
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WATER SUPPLY
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WATER TARIFFS
dc.subject
WATER UTILITIES
dc.title
The Distributional Incidence of Residential Water and Electricity Subsidies
en
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2006/04/6708395/distributional-incidence-residential-water-electricity-subsidies
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Governance
okr.globalpractice
Water
okr.globalpractice
Energy and Extractives
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-3878
okr.identifier.externaldocumentum
000012009_20060405124412
okr.identifier.internaldocumentum
6708395
okr.identifier.report
WPS3878
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/04/05/000012009_20060405124412/Rendered/PDF/wps38780rev0pdf.pdf
en
okr.topic
Economic Theory and Research
okr.topic
Water Supply and Sanitation :: Town Water Supply and Sanitation
okr.topic
Water Supply and Sanitation :: Urban Water Supply and Sanitation
okr.topic
Law and Development :: Tax Law
okr.topic
Energy :: Energy Production and Transportation
okr.topic
Macroeconomics and Economic Growth
okr.unit
Development Research Group (DECRG)
okr.volume
1 of 1

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