Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro

The creation of the Energy Community of South Eastern Europe in 2005 committed countries in South Eastern Europe to liberalize their energy markets in accordance to EU regulations. The Government of Montenegro is thus in the process of reforming its energy sector, which includes an electricity tarif...

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Main Authors:	Silva, Patricia, Klytchnikova, Irina, Radevic, Dragana
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Consumer Economics: Empirical Analysis D120 Economics of Regulation L510 Electric Utilities L940 Industry Studies: Utilities and Transportation: Government Policy L980 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: Consumer Economics Health Education and Training: Welfare, Income, Wealth, and Poverty P360
Online Access:	http://hdl.handle.net/10986/4945

id	okr-10986-4945
recordtype	oai_dc
spelling	okr-10986-49452021-04-23T14:02:20Z Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro Silva, Patricia Klytchnikova, Irina Radevic, Dragana Consumer Economics: Empirical Analysis D120 Economics of Regulation L510 Electric Utilities L940 Industry Studies: Utilities and Transportation: Government Policy L980 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: Consumer Economics Health Education and Training: Welfare, Income, Wealth, and Poverty P360 The creation of the Energy Community of South Eastern Europe in 2005 committed countries in South Eastern Europe to liberalize their energy markets in accordance to EU regulations. The Government of Montenegro is thus in the process of reforming its energy sector, which includes an electricity tariff reform. This paper analyzes the environmental and social impacts of an increase in residential electricity tariffs contemplated--which is expected to range anywhere from 40 to over 100% increase. As this analysis shows, such a significant price rise will impose a heavy burden on the poor households and it may adversely affect the environment. In an ex ante investigation of the welfare impact of this price increase on households in Montenegro, we show that the anticipated price increase will result in a very significant increase in households' energy expenditures. A simulation of alternative policy measures analyzes the impact of different tariff levels and structures, focusing on the poor and vulnerable households. Higher electricity prices could also significantly increase the proportion of households using fuelwood for space heating. Thus the level of fuelwood consumption should be carefully monitored under the electricity tariff reforms and the Government of Montenegro should combine the tariff reforms with a carefully evaluated set of policy measures to mitigate the effect of the electricity price increase on the poor. 2012-03-30T07:30:30Z 2012-03-30T07:30:30Z 2009 Journal Article Utilities Policy 09571787 http://hdl.handle.net/10986/4945 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Montenegro
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Consumer Economics: Empirical Analysis D120 Economics of Regulation L510 Electric Utilities L940 Industry Studies: Utilities and Transportation: Government Policy L980 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: Consumer Economics Health Education and Training: Welfare, Income, Wealth, and Poverty P360
spellingShingle	Consumer Economics: Empirical Analysis D120 Economics of Regulation L510 Electric Utilities L940 Industry Studies: Utilities and Transportation: Government Policy L980 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: Consumer Economics Health Education and Training: Welfare, Income, Wealth, and Poverty P360 Silva, Patricia Klytchnikova, Irina Radevic, Dragana Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro
geographic_facet	Montenegro
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	The creation of the Energy Community of South Eastern Europe in 2005 committed countries in South Eastern Europe to liberalize their energy markets in accordance to EU regulations. The Government of Montenegro is thus in the process of reforming its energy sector, which includes an electricity tariff reform. This paper analyzes the environmental and social impacts of an increase in residential electricity tariffs contemplated--which is expected to range anywhere from 40 to over 100% increase. As this analysis shows, such a significant price rise will impose a heavy burden on the poor households and it may adversely affect the environment. In an ex ante investigation of the welfare impact of this price increase on households in Montenegro, we show that the anticipated price increase will result in a very significant increase in households' energy expenditures. A simulation of alternative policy measures analyzes the impact of different tariff levels and structures, focusing on the poor and vulnerable households. Higher electricity prices could also significantly increase the proportion of households using fuelwood for space heating. Thus the level of fuelwood consumption should be carefully monitored under the electricity tariff reforms and the Government of Montenegro should combine the tariff reforms with a carefully evaluated set of policy measures to mitigate the effect of the electricity price increase on the poor.
format	Journal Article
author	Silva, Patricia Klytchnikova, Irina Radevic, Dragana
author_facet	Silva, Patricia Klytchnikova, Irina Radevic, Dragana
author_sort	Silva, Patricia
title	Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro
title_short	Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro
title_full	Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro
title_fullStr	Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro
title_full_unstemmed	Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro
title_sort	poverty and environmental impacts of electricity price reforms in montenegro
publishDate	2012
url	http://hdl.handle.net/10986/4945
_version_	1764393346275475456

Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro

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