Economy-Wide Impact of Electricity Price Increases in Bangladesh : A CGE Analysis
This paper presents an analysis of the economic impact of electricity price increases in Bangladesh. A computable general equilibrium (CGE) model is developed and used to trace through the impact of an increase in the price of electricity on GDP, h...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/252471539105688813/Economy-wide-impact-of-electricity-price-increases-in-Bangladesh-a-CGE-analysis http://hdl.handle.net/10986/30631 |
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okr-10986-306312021-05-25T09:55:11Z Economy-Wide Impact of Electricity Price Increases in Bangladesh : A CGE Analysis Timilsna, Govinda Pargal, Sheoli Tsigas, Marinos Sahin, Sebnem ELECTRICITY ELECTRICITY PRICING CGE MODEL SUBSIDIES PUBLIC UTILITIES LIQUEFIED NATURAL GAS POWER GENERATION This paper presents an analysis of the economic impact of electricity price increases in Bangladesh. A computable general equilibrium (CGE) model is developed and used to trace through the impact of an increase in the price of electricity on GDP, household consumption, economy-wide investment, government income, the trade balance, inflation, and sectoral outputs and prices. The primary motivation for this analysis is the need to understand the impact of adjusting the price of electricity to reduce the significant fiscal burden of current budget transfers to the single buyer of wholesale power – de facto subsidies to the end-consumer. Another impetus is the fact that the impending import of liquefied natural gas (LNG) will result in a more expensive fuel mix for power generation, which will lead to a need to increase the price of electricity supplied to consumers. Both channels impacting the price of electricity are modeled and their impacts analyzed. The model takes into account the fact that a reduction in subsidies to the sector or an increase in the price of electricity will augment government revenues, which can be recycled towards productive ends. The value of the model lies in the indicative results, insights and options it provides for decision-makers to take into account in their planning andpolicy formulation. Going forward, it would be important to carry out a supplementary distributional analysis to understand the implications for the poor and thus the full potential impact of the policy changes being analyzed. 2018-10-30T21:22:16Z 2018-10-30T21:22:16Z 2017-11 Working Paper http://documents.worldbank.org/curated/en/252471539105688813/Economy-wide-impact-of-electricity-price-increases-in-Bangladesh-a-CGE-analysis http://hdl.handle.net/10986/30631 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research South Asia Bangladesh |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ELECTRICITY ELECTRICITY PRICING CGE MODEL SUBSIDIES PUBLIC UTILITIES LIQUEFIED NATURAL GAS POWER GENERATION |
| spellingShingle |
ELECTRICITY ELECTRICITY PRICING CGE MODEL SUBSIDIES PUBLIC UTILITIES LIQUEFIED NATURAL GAS POWER GENERATION Timilsna, Govinda Pargal, Sheoli Tsigas, Marinos Sahin, Sebnem Economy-Wide Impact of Electricity Price Increases in Bangladesh : A CGE Analysis |
| geographic_facet |
South Asia Bangladesh |
| description |
This paper presents an analysis of the
economic impact of electricity price increases in
Bangladesh. A computable general equilibrium (CGE) model is
developed and used to trace through the impact of an
increase in the price of electricity on GDP, household
consumption, economy-wide investment, government income, the
trade balance, inflation, and sectoral outputs and prices.
The primary motivation for this analysis is the need to
understand the impact of adjusting the price of electricity
to reduce the significant fiscal burden of current budget
transfers to the single buyer of wholesale power – de facto
subsidies to the end-consumer. Another impetus is the fact
that the impending import of liquefied natural gas (LNG)
will result in a more expensive fuel mix for power
generation, which will lead to a need to increase the price
of electricity supplied to consumers. Both channels
impacting the price of electricity are modeled and their
impacts analyzed. The model takes into account the fact that
a reduction in subsidies to the sector or an increase in the
price of electricity will augment government revenues, which
can be recycled towards productive ends. The value of the
model lies in the indicative results, insights and options
it provides for decision-makers to take into account in
their planning andpolicy formulation. Going forward, it
would be important to carry out a supplementary
distributional analysis to understand the implications for
the poor and thus the full potential impact of the policy
changes being analyzed. |
| format |
Working Paper |
| author |
Timilsna, Govinda Pargal, Sheoli Tsigas, Marinos Sahin, Sebnem |
| author_facet |
Timilsna, Govinda Pargal, Sheoli Tsigas, Marinos Sahin, Sebnem |
| author_sort |
Timilsna, Govinda |
| title |
Economy-Wide Impact of Electricity Price Increases in Bangladesh : A CGE Analysis |
| title_short |
Economy-Wide Impact of Electricity Price Increases in Bangladesh : A CGE Analysis |
| title_full |
Economy-Wide Impact of Electricity Price Increases in Bangladesh : A CGE Analysis |
| title_fullStr |
Economy-Wide Impact of Electricity Price Increases in Bangladesh : A CGE Analysis |
| title_full_unstemmed |
Economy-Wide Impact of Electricity Price Increases in Bangladesh : A CGE Analysis |
| title_sort |
economy-wide impact of electricity price increases in bangladesh : a cge analysis |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/252471539105688813/Economy-wide-impact-of-electricity-price-increases-in-Bangladesh-a-CGE-analysis http://hdl.handle.net/10986/30631 |
| _version_ |
1764472377236783104 |