Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption
To guarantee adequate and affordable water and sanitation services for vulnerable households, Chile introduced an individual means-tested water consumption subsidy a decade ago. Although the public authorities determine how the subsidy is applied,...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2001/06/1490091/incentive-based-subsidies-designing-output-based-subsidies-water-consumption http://hdl.handle.net/10986/11380 |
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okr-10986-113802021-06-14T10:59:22Z Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption Gomez-Lobo, Andres AFFORDABLE WATER CENTRAL GOVERNMENT CONNECTION SUBSIDY CROWDING CUBIC METER CUBIC METERS DEBT DURABLE GOODS FINANCIAL INCENTIVES HOUSEHOLD INCOME HOUSEHOLDS INCOME LIVING CONDITIONS MUNICIPAL LEVEL MUNICIPALITIES PRIVATE COMPANIES PRIVATE SECTOR REGIONAL DEVELOPMENT RESOURCE USE SANITATION SECTOR SANITATION SERVICES SERVICE DELIVERY SERVICE PROVIDER SEWERAGE BILL TARIFF SETTING TRANSFER PAYMENTS URBAN AREAS WASTAGE WATER CHARGES WATER COMPANIES WATER COMPANY WATER CONSUMPTION WATER PRICES WATER SERVICES WATER TARIFFS WILLINGNESS TO PAY WATER SUPPLY & SANITATION WATER CONSUMPTION VULNERABLE GROUPS SUBSIDIES WATER TARIFFS WATER PRICES INCENTIVES TARGETING To guarantee adequate and affordable water and sanitation services for vulnerable households, Chile introduced an individual means-tested water consumption subsidy a decade ago. Although the public authorities determine how the subsidy is applied, the mostly private companies deliver the service - under a scheme with built-in incentives to ensure cost-effective service delivery by the companies and low wastage by the customers. This case study reviews Chile's experience of using tax-funded subsidy payments, contingent on delivery of service by water companies. Funding the subsidy through general taxation allows the regulator to set tariffs according to economic criteria. Targeting allows scarce resources to be directed to those who need subsidies most. Both characteristics reduce the financial burden on the government as compared with the universal subsidy used in the past. 2012-08-13T14:54:40Z 2012-08-13T14:54:40Z 2001-06 http://documents.worldbank.org/curated/en/2001/06/1490091/incentive-based-subsidies-designing-output-based-subsidies-water-consumption Viewpoint. -- Note no. 232 (June 2001) http://hdl.handle.net/10986/11380 English Viewpoint CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research Latin America & Caribbean Chile |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AFFORDABLE WATER CENTRAL GOVERNMENT CONNECTION SUBSIDY CROWDING CUBIC METER CUBIC METERS DEBT DURABLE GOODS FINANCIAL INCENTIVES HOUSEHOLD INCOME HOUSEHOLDS INCOME LIVING CONDITIONS MUNICIPAL LEVEL MUNICIPALITIES PRIVATE COMPANIES PRIVATE SECTOR REGIONAL DEVELOPMENT RESOURCE USE SANITATION SECTOR SANITATION SERVICES SERVICE DELIVERY SERVICE PROVIDER SEWERAGE BILL TARIFF SETTING TRANSFER PAYMENTS URBAN AREAS WASTAGE WATER CHARGES WATER COMPANIES WATER COMPANY WATER CONSUMPTION WATER PRICES WATER SERVICES WATER TARIFFS WILLINGNESS TO PAY WATER SUPPLY & SANITATION WATER CONSUMPTION VULNERABLE GROUPS SUBSIDIES WATER TARIFFS WATER PRICES INCENTIVES TARGETING |
| spellingShingle |
AFFORDABLE WATER CENTRAL GOVERNMENT CONNECTION SUBSIDY CROWDING CUBIC METER CUBIC METERS DEBT DURABLE GOODS FINANCIAL INCENTIVES HOUSEHOLD INCOME HOUSEHOLDS INCOME LIVING CONDITIONS MUNICIPAL LEVEL MUNICIPALITIES PRIVATE COMPANIES PRIVATE SECTOR REGIONAL DEVELOPMENT RESOURCE USE SANITATION SECTOR SANITATION SERVICES SERVICE DELIVERY SERVICE PROVIDER SEWERAGE BILL TARIFF SETTING TRANSFER PAYMENTS URBAN AREAS WASTAGE WATER CHARGES WATER COMPANIES WATER COMPANY WATER CONSUMPTION WATER PRICES WATER SERVICES WATER TARIFFS WILLINGNESS TO PAY WATER SUPPLY & SANITATION WATER CONSUMPTION VULNERABLE GROUPS SUBSIDIES WATER TARIFFS WATER PRICES INCENTIVES TARGETING Gomez-Lobo, Andres Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption |
| geographic_facet |
Latin America & Caribbean Chile |
| relation |
Viewpoint |
| description |
To guarantee adequate and affordable
water and sanitation services for vulnerable households,
Chile introduced an individual means-tested water
consumption subsidy a decade ago. Although the public
authorities determine how the subsidy is applied, the mostly
private companies deliver the service - under a scheme with
built-in incentives to ensure cost-effective service
delivery by the companies and low wastage by the customers.
This case study reviews Chile's experience of using
tax-funded subsidy payments, contingent on delivery of
service by water companies. Funding the subsidy through
general taxation allows the regulator to set tariffs
according to economic criteria. Targeting allows scarce
resources to be directed to those who need subsidies most.
Both characteristics reduce the financial burden on the
government as compared with the universal subsidy used in
the past. |
| format |
Publications & Research :: Viewpoint |
| author |
Gomez-Lobo, Andres |
| author_facet |
Gomez-Lobo, Andres |
| author_sort |
Gomez-Lobo, Andres |
| title |
Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption |
| title_short |
Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption |
| title_full |
Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption |
| title_fullStr |
Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption |
| title_full_unstemmed |
Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption |
| title_sort |
incentive-based subsidies : designing output-based subsidies for water consumption |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2001/06/1490091/incentive-based-subsidies-designing-output-based-subsidies-water-consumption http://hdl.handle.net/10986/11380 |
| _version_ |
1764416527396765696 |