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Water, electricity, and the poor : who benefits from utility subsidies (English)

While consumer utility subsidies are widespread in both the water and electricity sectors, their effectiveness in reaching and distributing resources to the poor is the subject of much debate. This publication brings together empirical evidence on subsidy performance across a wide range of countries. It documents the prevalence of consumer subsidies, provides a typology of the many variants found in the developing world, and presents a number of indicators useful in assessing the degree to which such subsidies benefit the poor, focusing on three key concepts: beneficiary incidence, benefit incidence, and materiality. The findings on subsidy performance will be useful to policy makers, utility regulators, and sector practitioners who are contemplating introducing, eliminating, or modifying utility subsidies, and to those who view consumer utility subsidies as a social protection instrument.

Details

  • Author

    Abdullah,Roohi, Foster,Vivien, Halpern,Jonathan D., Komives,Kristin, Wodon,Quentin T.

  • Document Date

    2005/10/25

  • Document Type

    Publication

  • Report Number

    34334

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2010/07/01

  • Disclosure Status

    Disclosed

  • Doc Name

    Water, electricity, and the poor : who benefits from utility subsidies?

  • Keywords

    energy and water;water supply and sanitation sector;utility subsidies;access to safe water;types of consumer;cubic meter of water;primary school completion rate;Kilograms of Oil Equivalent;form of consumption;cost of service provision;water through household connections;delivery of water supply;provision of infrastructure service;additional unit of water;access to water supply;water and electricity;water supply sector;power sector subsidy;quantity of water;financially weak utilities;case of electricity;soft budget constraint;population with access;units of water;private water connection;tariffs for water;Urban Water Supply;subsidies for water;repair and maintenance;cost of subsidy;water supply network;price for water;cost of water;transfers in kind;disparities in access;impact of subsidies;social protection framework;liquefied petroleum gas;private service provider;reduction in poverty;burden of disease;Access to Electricity;standard of living;social policy agenda;redistribution of resource;safe water supply;government financial support;central government transfer;social protection program;efficient service provision;electricity service;block tariff;targeted subsidy;poor household;utility service;consumption subsidies;targeting performance;connection fee;illegal connection;water utility;water utilities;means testing;Cash Transfer;fiscal transfer;consumer subsidy;subsidy programs;tariff structure;government fund;sewer connection;connection subsidy;improved health;utility operation;public water;sanitation facility;electricity sector;transfer mechanism;social policies;fund subsidies;Water Subsidies;sectoral goals;public fund;household use;flat fee;opportunity cost;adverse consequence;conceptual framework;rural area;Sanitation Services;state transfer;utility tariff;flat rate;residential consumer;transfer resource;Price Subsidies;electric utilities;educational outcome;capital subsidy;implicit subsidy;sewer service;improved water;tax revenue;high-volume consumers;empirical study;urban household;gini coefficient;consumer spend;informal settlement;load profile;budget negotiation;sanitary facility;administrative cost;targeted program;consumption decision;income poverty;living standard;health facility;improved service;broad access;potential threat;adequate financing;annual subsidy;inadequate sanitation;government support;low-income household;safe storage;tariff increase;political support;financial weakness;targeting program;water business;external source;collateral damage;geographic targeting;important component;Learning and Innovation Credit;resource transfer;taxation revenue;productive activity;Tax Exemption;loan guarantee;allocation decision;debt obligation;price structure;government funding;sanitation improvement;labor rate;private supply;volumetric charge;public network;excess labor;intended beneficiary;empirical analysis;cash payment;beneficiary household;incentive cost;market opportunity;storage system;government subsidy;capital program;cost utility;increase productivity;alternative provider;affordable service;urban electricity;large subsidy;Public Utilities;subsidiary right;applicable law;comparative study;indian states;private connections;redistributing resource;sum equivalent;Social Welfare;capital intensity;disposable income;administrative structure;material benefit;large transfer;alternative consumption;raw water;water production;financial loss;capital stock;public expenditure;empirical research;utility cost;subsidy scheme;ready access;international energy;categorical targeting;private cost;empirical evidence;lifeline block;communal water;social objective;water user;private consumption;adequate services;utility network;total consumption;basic infrastructure;residential consumption;private finance;fiscal resource;water sector;cost structure;cost-recovery price;payment system;Water Services;Cash flow;geographical region;average cost;industrial demand;private household;public tap;industrial consumer;billing period

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Citation

Abdullah,Roohi Foster,Vivien Halpern,Jonathan D. Komives,Kristin Wodon,Quentin T.

Water, electricity, and the poor : who benefits from utility subsidies (English). Directions in development Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/606521468136796984/Water-electricity-and-the-poor-who-benefits-from-utility-subsidies