Komives, KristinJohnson, Todd M.Halpern, Jonathan D.Aburto, Jose LuisScott, John R.2012-03-192012-04-042012-03-192012-04-042009978-0-8213-7884-7https://hdl.handle.net/10986/2584https://hdl.handle.net/10986/5959This report addresses a pressing issue in Mexico's electricity sector the large and growing subsidies to residential consumers and their regressive incidence across different segments of the population. It responds to requests from the Ministry of Energy to provide a preliminary assessment of alternatives to the current subsidy system, building on prior collaboration between the Government of Mexico and the World Bank on the distributional impact of public spending, the performance of conditional cash transfer programs and other poverty-targeted programs, and related work on pricing and subsidies for infrastructure services. This study was designed as the first phase of a multiphase program of collaborative analytical work. This first phase provides estimates of the distributional and fiscal performance of alternative subsidy targeting mechanisms to help inform discussion and deliberations on feasible goals and practical approaches over the medium term. A second phase will address transition paths, specific compensatory mechanisms, and decision processes for pursuing the options that the Mexican authorities deem most promising.CC BY 3.0 IGOACCESS TO ELECTRICITYACCOUNTINGAGRICULTUREAIR QUALITYAPPROACHAVERAGE COSTSBENCHMARKINGBENEFICIARIESCALCULATIONCALCULATIONSCASH SUBSIDYCASH TRANSFERCLIMATE CHANGECONNECTED HOUSEHOLDSCONSUMERCONSUMER BEHAVIORCONSUMER GROUPSCONSUMPTION LEVELSCONTRIBUTIONCONTRIBUTIONSCOST ESTIMATECOST OF ELECTRICITYCOST RECOVERYCURRENCYDEMAND ELASTICITYDEMAND FOR ELECTRICITYDEPRECIATIONDIESELDISPOSABLE INCOMESDISTRIBUTION LOSSESDISTRIBUTION OF COSTSDISTRIBUTION OF ELECTRICITYDIVIDENDSECONOMIC COMPETITIVENESSECONOMIC COSTECONOMIC EFFICIENCYECONOMIC PROGRAMSEFFICIENCY IMPROVEMENTSELECTRIC UTILITIESELECTRICITYELECTRICITY CONSUMPTIONELECTRICITY DEMANDELECTRICITY PRICESELECTRICITY SALESELECTRICITY SUPPLYELECTRICITY TARIFFELECTRICITY TARIFFSELECTRICITY UTILITIESELECTRICITY UTILITYEMISSIONSEMISSIONS FROM POWER PLANTSEMPLOYMENTENERGY CONSUMPTIONEXCHANGE RATEEXCHANGE RATESEXCLUSIONFINANCESFINANCIAL COSTFINANCIAL HEALTHFINANCIAL SITUATIONFINANCIAL SUBSIDIESFINANCIAL SUSTAINABILITYFISCAL PERFORMANCEFUELFUEL COSTSFUEL OILFUELSGDPGENERATING CAPACITYGENERATIONGOVERNMENT EXPENDITURESGREENHOUSE GASGREENHOUSE GAS EMISSIONSGROSS DOMESTIC PRODUCTHIGH GAS PRICESHOUSEHOLD EXPENDITUREHOUSEHOLD EXPENDITURESHOUSEHOLD INCOMEINCOMEINCOME GROUPSINCOME LEVELINCOME LEVELSINEFFICIENCYINFERIOR GOODSINFLATIONINVESTMENT PROGRAMJUDGMENTKILOWATT-HOURLIVING STANDARDSLOW-INCOMELOW-INCOME CONSUMERSLOWER INCOMELOWER-INCOME POPULATIONMARGINAL COSTMARGINAL COST OF ELECTRICITYMARGINAL COSTSMERIT GOODNATURAL GASOILPARTICULATESPEAK DEMANDPENSIONSPOLLUTANTSPOSITIVE EXTERNALITIESPOWERPOWER PRODUCERPOWER SYSTEMPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRICE OF ELECTRICITYPRIMARY EDUCATIONPUBLIC EXPENDITUREPURCHASESPURCHASING POWERRESIDENTIAL CONSUMERSRETIREMENTSAFETY NETSOCIAL FUNDSOCIAL FUNDSSOCIOECONOMIC IMPACTSOURCE OF INFORMATIONSUPPLY COSTSSUPPLY EFFICIENCYTARGETED SUBSIDIESTARIFF LEVELSTARIFF STRUCTURETARIFF STRUCTURESTARIFF SYSTEMTARIFF SYSTEMSTAXTAX REBATESTEMPORARY EMPLOYMENTTOTAL COSTTOTAL COSTSTRANSMISSION FACILITIESTRANSMISSION LOSSESUTILITY CHARGESVARIABLE COSTWAGEWAGESWEB PAGEWORTHWorld Bank10.1596/978-0-8213-7884-7