Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study

Direct subsidies are an increasingly popular means of making infrastructure services more affordable to the poor. Under the direct subsidy approach, governments pay part of the water bill of poor households that meet certain criteria. This approach...

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Main Authors:	Foster, Vivien, Gómez-Lobos, Andrés, Halpern, Jonathan
Format:	Viewpoint
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ADEQUATE WATER ADMINISTRATIVE TERMS ALTERNATIVE POLICY INSTRUMENTS CONNECTION SUBSIDY CONSUMERS CONSUMPTION LEVELS CUBIC METER ECONOMIC CIRCUMSTANCES ECONOMIC INCENTIVES ECONOMICS EFFICIENT USE OF WATER EXTREME POVERTY FIXED COSTS HOUSEHOLDS INCOME INCOME LEVELS LOW-INCOME HOUSEHOLDS PER CAPITA INCOME PERVERSE INCENTIVES POLICY RESEARCH POTABLE WATER POVERTY LINE PRICE OF WATER PRIVATE SECTOR PUBLIC HEALTH PUBLIC WATER SERVICE PROVISION SEWERAGE NETWORK SEWERAGE SERVICES SIMULATION TECHNIQUES TOILET FACILITIES TOWNS UTILITIES UTILITY SERVICES WATER COMPANIES WATER CONSUMPTION WATER SERVICES WATER UTILITIES WATER UTILITY WILLINGNESS TO PAY TARGETED SUBSIDIES PAYMENTS SYSTEMS WATER PRICING NEEDS ASSESSMENT ELIGIBILITY CRITERIA WATER SERVICE CONNECTIONS SEWERAGE SURVEY DATA HOUSEHOLD INCOME HOUSEHOLD EXPENDITURE SURVEYS ADMINISTRATIVE COSTS INTERVIEWS SIMULATIONS
Online Access:	http://documents.worldbank.org/curated/en/2000/06/729348/designing-direct-subsidies-poor-water-sanitation-case-study http://hdl.handle.net/10986/11428

id	okr-10986-11428
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spelling	okr-10986-114282021-04-23T14:02:55Z Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study Foster, Vivien Gómez-Lobos, Andrés Halpern, Jonathan ADEQUATE WATER ADMINISTRATIVE TERMS ALTERNATIVE POLICY INSTRUMENTS CONNECTION SUBSIDY CONSUMERS CONSUMPTION LEVELS CUBIC METER ECONOMIC CIRCUMSTANCES ECONOMIC INCENTIVES ECONOMICS EFFICIENT USE OF WATER EXTREME POVERTY FIXED COSTS HOUSEHOLDS INCOME INCOME LEVELS LOW-INCOME HOUSEHOLDS PER CAPITA INCOME PERVERSE INCENTIVES POLICY RESEARCH POTABLE WATER POVERTY LINE PRICE OF WATER PRIVATE SECTOR PUBLIC HEALTH PUBLIC WATER SERVICE PROVISION SEWERAGE NETWORK SEWERAGE SERVICES SIMULATION TECHNIQUES TOILET FACILITIES TOWNS UTILITIES UTILITY SERVICES WATER COMPANIES WATER CONSUMPTION WATER SERVICES WATER UTILITIES WATER UTILITY WILLINGNESS TO PAY TARGETED SUBSIDIES PAYMENTS SYSTEMS WATER PRICING NEEDS ASSESSMENT ELIGIBILITY CRITERIA WATER SERVICE CONNECTIONS SEWERAGE SURVEY DATA HOUSEHOLD INCOME HOUSEHOLD EXPENDITURE SURVEYS ADMINISTRATIVE COSTS INTERVIEWS ECONOMIC INCENTIVES SIMULATIONS Direct subsidies are an increasingly popular means of making infrastructure services more affordable to the poor. Under the direct subsidy approach, governments pay part of the water bill of poor households that meet certain criteria. This approach was first used in water sector reforms in Chile in the early 1990s and is an alternative to the traditional method in which governments pay subsidies directly to utilities, often allowing the price of water to fall below economic costs indiscriminately. This Note illustrates how simulation techniques can be used to inform the design of direct subsidy schemes, ensuring that they are both cost-effective and accurate in reaching the target population. 2012-08-13T15:02:35Z 2012-08-13T15:02:35Z 2000-06 http://documents.worldbank.org/curated/en/2000/06/729348/designing-direct-subsidies-poor-water-sanitation-case-study Viewpoint. -- Note no. 211 (June 2000) http://hdl.handle.net/10986/11428 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	ADEQUATE WATER ADMINISTRATIVE TERMS ALTERNATIVE POLICY INSTRUMENTS CONNECTION SUBSIDY CONSUMERS CONSUMPTION LEVELS CUBIC METER ECONOMIC CIRCUMSTANCES ECONOMIC INCENTIVES ECONOMICS EFFICIENT USE OF WATER EXTREME POVERTY FIXED COSTS HOUSEHOLDS INCOME INCOME LEVELS LOW-INCOME HOUSEHOLDS PER CAPITA INCOME PERVERSE INCENTIVES POLICY RESEARCH POTABLE WATER POVERTY LINE PRICE OF WATER PRIVATE SECTOR PUBLIC HEALTH PUBLIC WATER SERVICE PROVISION SEWERAGE NETWORK SEWERAGE SERVICES SIMULATION TECHNIQUES TOILET FACILITIES TOWNS UTILITIES UTILITY SERVICES WATER COMPANIES WATER CONSUMPTION WATER SERVICES WATER UTILITIES WATER UTILITY WILLINGNESS TO PAY TARGETED SUBSIDIES PAYMENTS SYSTEMS WATER PRICING NEEDS ASSESSMENT ELIGIBILITY CRITERIA WATER SERVICE CONNECTIONS SEWERAGE SURVEY DATA HOUSEHOLD INCOME HOUSEHOLD EXPENDITURE SURVEYS ADMINISTRATIVE COSTS INTERVIEWS ECONOMIC INCENTIVES SIMULATIONS
spellingShingle	ADEQUATE WATER ADMINISTRATIVE TERMS ALTERNATIVE POLICY INSTRUMENTS CONNECTION SUBSIDY CONSUMERS CONSUMPTION LEVELS CUBIC METER ECONOMIC CIRCUMSTANCES ECONOMIC INCENTIVES ECONOMICS EFFICIENT USE OF WATER EXTREME POVERTY FIXED COSTS HOUSEHOLDS INCOME INCOME LEVELS LOW-INCOME HOUSEHOLDS PER CAPITA INCOME PERVERSE INCENTIVES POLICY RESEARCH POTABLE WATER POVERTY LINE PRICE OF WATER PRIVATE SECTOR PUBLIC HEALTH PUBLIC WATER SERVICE PROVISION SEWERAGE NETWORK SEWERAGE SERVICES SIMULATION TECHNIQUES TOILET FACILITIES TOWNS UTILITIES UTILITY SERVICES WATER COMPANIES WATER CONSUMPTION WATER SERVICES WATER UTILITIES WATER UTILITY WILLINGNESS TO PAY TARGETED SUBSIDIES PAYMENTS SYSTEMS WATER PRICING NEEDS ASSESSMENT ELIGIBILITY CRITERIA WATER SERVICE CONNECTIONS SEWERAGE SURVEY DATA HOUSEHOLD INCOME HOUSEHOLD EXPENDITURE SURVEYS ADMINISTRATIVE COSTS INTERVIEWS ECONOMIC INCENTIVES SIMULATIONS Foster, Vivien Gómez-Lobos, Andrés Halpern, Jonathan Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study
geographic_facet	Latin America & Caribbean Chile
relation	Viewpoint
description	Direct subsidies are an increasingly popular means of making infrastructure services more affordable to the poor. Under the direct subsidy approach, governments pay part of the water bill of poor households that meet certain criteria. This approach was first used in water sector reforms in Chile in the early 1990s and is an alternative to the traditional method in which governments pay subsidies directly to utilities, often allowing the price of water to fall below economic costs indiscriminately. This Note illustrates how simulation techniques can be used to inform the design of direct subsidy schemes, ensuring that they are both cost-effective and accurate in reaching the target population.
format	Publications & Research :: Viewpoint
author	Foster, Vivien Gómez-Lobos, Andrés Halpern, Jonathan
author_facet	Foster, Vivien Gómez-Lobos, Andrés Halpern, Jonathan
author_sort	Foster, Vivien
title	Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study
title_short	Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study
title_full	Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study
title_fullStr	Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study
title_full_unstemmed	Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study
title_sort	designing direct subsidies for the poor : a water and sanitation case study
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2000/06/729348/designing-direct-subsidies-poor-water-sanitation-case-study http://hdl.handle.net/10986/11428
_version_	1764416697462161408

Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study

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