Development Policy Review · 2007 · 46 citations · 7 references
Public WelfareEducationWelfare EconomicsEconomic AnalysisPovertyResidential Utility CustomersConsumer ChoiceEconomicsPublic PolicyElectricity SubsidiesSocial TransfersEmpirical EvaluationWater PricingElectricity MarketBehavioral EconomicsRental SubsidiesWater DemandEconomic PolicyUtility SubsidiesBusinessConnection SubsidiesDemand Response
Subsidies to residential utility customers are important in‐kind transfer mechanisms in developing countries. Do these subsidies reach the poor? This article finds the average targeting performance of water and electricity subsidies to be similar to that of other social‐transfer mechanisms using the same targeting method. The most common form — a quantity‐based consumption subsidy aiming to subsidise low‐volume customers — is highly regressive. Many geographically‐targeted and most means‐tested utility subsidies are progressive, but still exclude many poor households. Connection subsidies are an attractive alternative in low coverage areas, but they will only reach the poor if utilities extend network access to poor households and if households choose to connect.
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David Coady · The World Bank Research Observer · 2004 · 293 citations
Nutrition, Behavioral Decision Making, Public Health Nutrition +28