Residential Electricity Subsidies in Pakistan : Targeting, Welfare Impacts, and Options for Reform
This paper examines the economic and social implications of the current system of residential electricity subsidies in Pakistan, and assesses the potential to improve the system's outcomes through alternative targeting and program design. The...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/918461481635891184/Residential-electricity-subsidies-in-Pakistan-targeting-welfare-impacts-and-options-for-reform http://hdl.handle.net/10986/25811 |
| Summary: | This paper examines the economic and
social implications of the current system of residential
electricity subsidies in Pakistan, and assesses the
potential to improve the system's outcomes through
alternative targeting and program design. The analysis is
multi-disciplinary in nature, drawing on national household
survey data, electric company data on household electricity
consumption, a welfare database, and a specially
commissioned qualitative assessment of household and service
provider attitudes and experiences. Affordability is only
one of many concerns among electricity users, with
reliability of supply and customer service being arguably
more important. The analysis finds that targeting could be
improved considerably by allocating subsidies according to
proxy-means test scores using an existing national
proxy-means test database. Providing a flat credit rather
than a price subsidy could also alleviate certain governance
concerns. The paper concludes with some guidance on how to
carry out these reforms based on international experience. |
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