Reforming Electricity Subsidies in Pakistan : Measures to Protect the Poor

As part of its energy sector reforms, the Government of Pakistan plans to reduce spending on electricity subsidies to 0.3-0.4 percent of gross domestic product (GDP) by mid-2016. The reforms will alleviate a major constraint on the government'...

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Main Authors: Walker, Thomas, Sahin, Sebnem, Saqib, Mohammad, Mayer, Kristy
Format: Economic & Sector Work
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2014/06/23853273/reforming-electricity-subsidies-pakistan-measures-protect-poor
http://hdl.handle.net/10986/21569
id okr-10986-21569
recordtype oai_dc
spelling okr-10986-215692021-04-23T14:04:03Z Reforming Electricity Subsidies in Pakistan : Measures to Protect the Poor Walker, Thomas Sahin, Sebnem Saqib, Mohammad Mayer, Kristy AGRICULTURE APPROACH BALANCE BASE YEAR BATTERIES BENEFICIARIES BENEFICIARY BUSINESSES CASH TRANSFER CASH TRANSFERS COAL COMMERCIAL BANKS CONSUMERS CONSUMPTION LEVELS COST OF ELECTRICITY DEBT DEMAND FOR ELECTRICITY DEVELOPMENT POLICY ECONOMIC ACTIVITY ECONOMIC OUTLOOK ELASTICITY OF DEMAND ELECTRIC POWER ELECTRICITY ELECTRICITY ACCESS ELECTRICITY BILLS ELECTRICITY CONSUMERS ELECTRICITY CONSUMPTION ELECTRICITY COSTS ELECTRICITY DEMAND ELECTRICITY GENERATION ELECTRICITY LOAD ELECTRICITY PRICE ELECTRICITY PRICE INCREASE ELECTRICITY PRICE INCREASES ELECTRICITY PRICES ELECTRICITY PRODUCTION ELECTRICITY SECTOR ELECTRICITY SECTOR REFORM ELECTRICITY SERVICE ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRICITY USAGE ELECTRICITY USE ELECTRICITY UTILITIES EXPENDITURE EXPENDITURES FEASIBILITY STUDIES FORECASTS FUEL FUEL OIL GDP GENERATORS GEOGRAPHICAL AREA GLOBAL TRADE GOVERNMENT SUBSIDY HOUSEHOLD INCOME INCOME INCOME ELASTICITY OF DEMAND INCOME GROWTH INCOME LEVELS INFLATION INFRASTRUCTURE INVESTMENT INTERNATIONAL BANK LIVING STANDARDS MONETARY FUND NATURAL DISASTERS NATURAL GAS OIL PRICES OPEN ACCESS POWER SECTOR PRICE CHANGES PRICE ELASTICITY PRICE INCREASES PRICE OF ELECTRICITY PROCUREMENT PROMOTING ENERGY EFFICIENCY QUANTITY OF ELECTRICITY REAL GDP REGISTRATION SYSTEMS REGISTRY REGULATORY AUTHORITY RESULT RESULTS SAFETY NETS TARGETS TARIFF REVENUE TARIFF REVENUES TARIFF STRUCTURE TAX TELEVISION USERS USES UTILITY FUNCTION As part of its energy sector reforms, the Government of Pakistan plans to reduce spending on electricity subsidies to 0.3-0.4 percent of gross domestic product (GDP) by mid-2016. The reforms will alleviate a major constraint on the government's budget. However, they will necessitate increases in the price of electricity, which have the potential to measurably reduce the welfare of the poor. The government will need to carefully design the price increases and provide associated compensation to avoid this outcome. This paper demonstrates that that it is possible for the government to protect the poor against most of the costs of the reform while at the same time improving the targeting of remaining subsidy expenditures. Measures that can be taken include targeting subsidies based on poverty scores and providing targeted cash compensation to poor households. The authors illustrate how these measures can be implemented, and estimate their associated welfare impacts. 2015-03-10T15:50:56Z 2015-03-10T15:50:56Z 2014-06-06 http://documents.worldbank.org/curated/en/2014/06/23853273/reforming-electricity-subsidies-pakistan-measures-protect-poor http://hdl.handle.net/10986/21569 English en_US World Bank Policy Paper Series on Pakistan;PK 24/12 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Social Protection Study South Asia Pakistan
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGRICULTURE
APPROACH
BALANCE
BASE YEAR
BATTERIES
BENEFICIARIES
BENEFICIARY
BUSINESSES
CASH TRANSFER
CASH TRANSFERS
COAL
COMMERCIAL BANKS
CONSUMERS
CONSUMPTION LEVELS
COST OF ELECTRICITY
DEBT
DEMAND FOR ELECTRICITY
DEVELOPMENT POLICY
ECONOMIC ACTIVITY
ECONOMIC OUTLOOK
ELASTICITY OF DEMAND
ELECTRIC POWER
ELECTRICITY
ELECTRICITY ACCESS
ELECTRICITY BILLS
ELECTRICITY CONSUMERS
ELECTRICITY CONSUMPTION
ELECTRICITY COSTS
ELECTRICITY DEMAND
ELECTRICITY GENERATION
ELECTRICITY LOAD
ELECTRICITY PRICE
ELECTRICITY PRICE INCREASE
ELECTRICITY PRICE INCREASES
ELECTRICITY PRICES
ELECTRICITY PRODUCTION
ELECTRICITY SECTOR
ELECTRICITY SECTOR REFORM
ELECTRICITY SERVICE
ELECTRICITY SUPPLY
ELECTRICITY TARIFF
ELECTRICITY TARIFFS
ELECTRICITY USAGE
ELECTRICITY USE
ELECTRICITY UTILITIES
EXPENDITURE
EXPENDITURES
FEASIBILITY STUDIES
FORECASTS
FUEL
FUEL OIL
GDP
GENERATORS
GEOGRAPHICAL AREA
GLOBAL TRADE
GOVERNMENT SUBSIDY
HOUSEHOLD INCOME
INCOME
INCOME ELASTICITY OF DEMAND
INCOME GROWTH
INCOME LEVELS
INFLATION
INFRASTRUCTURE INVESTMENT
INTERNATIONAL BANK
LIVING STANDARDS
MONETARY FUND
NATURAL DISASTERS
NATURAL GAS
OIL PRICES
OPEN ACCESS
POWER SECTOR
PRICE CHANGES
PRICE ELASTICITY
PRICE INCREASES
PRICE OF ELECTRICITY
PROCUREMENT
PROMOTING ENERGY EFFICIENCY
QUANTITY OF ELECTRICITY
REAL GDP
REGISTRATION SYSTEMS
REGISTRY
REGULATORY AUTHORITY
RESULT
RESULTS
SAFETY NETS
TARGETS
TARIFF REVENUE
TARIFF REVENUES
TARIFF STRUCTURE
TAX
TELEVISION
USERS
USES
UTILITY FUNCTION
spellingShingle AGRICULTURE
APPROACH
BALANCE
BASE YEAR
BATTERIES
BENEFICIARIES
BENEFICIARY
BUSINESSES
CASH TRANSFER
CASH TRANSFERS
COAL
COMMERCIAL BANKS
CONSUMERS
CONSUMPTION LEVELS
COST OF ELECTRICITY
DEBT
DEMAND FOR ELECTRICITY
DEVELOPMENT POLICY
ECONOMIC ACTIVITY
ECONOMIC OUTLOOK
ELASTICITY OF DEMAND
ELECTRIC POWER
ELECTRICITY
ELECTRICITY ACCESS
ELECTRICITY BILLS
ELECTRICITY CONSUMERS
ELECTRICITY CONSUMPTION
ELECTRICITY COSTS
ELECTRICITY DEMAND
ELECTRICITY GENERATION
ELECTRICITY LOAD
ELECTRICITY PRICE
ELECTRICITY PRICE INCREASE
ELECTRICITY PRICE INCREASES
ELECTRICITY PRICES
ELECTRICITY PRODUCTION
ELECTRICITY SECTOR
ELECTRICITY SECTOR REFORM
ELECTRICITY SERVICE
ELECTRICITY SUPPLY
ELECTRICITY TARIFF
ELECTRICITY TARIFFS
ELECTRICITY USAGE
ELECTRICITY USE
ELECTRICITY UTILITIES
EXPENDITURE
EXPENDITURES
FEASIBILITY STUDIES
FORECASTS
FUEL
FUEL OIL
GDP
GENERATORS
GEOGRAPHICAL AREA
GLOBAL TRADE
GOVERNMENT SUBSIDY
HOUSEHOLD INCOME
INCOME
INCOME ELASTICITY OF DEMAND
INCOME GROWTH
INCOME LEVELS
INFLATION
INFRASTRUCTURE INVESTMENT
INTERNATIONAL BANK
LIVING STANDARDS
MONETARY FUND
NATURAL DISASTERS
NATURAL GAS
OIL PRICES
OPEN ACCESS
POWER SECTOR
PRICE CHANGES
PRICE ELASTICITY
PRICE INCREASES
PRICE OF ELECTRICITY
PROCUREMENT
PROMOTING ENERGY EFFICIENCY
QUANTITY OF ELECTRICITY
REAL GDP
REGISTRATION SYSTEMS
REGISTRY
REGULATORY AUTHORITY
RESULT
RESULTS
SAFETY NETS
TARGETS
TARIFF REVENUE
TARIFF REVENUES
TARIFF STRUCTURE
TAX
TELEVISION
USERS
USES
UTILITY FUNCTION
Walker, Thomas
Sahin, Sebnem
Saqib, Mohammad
Mayer, Kristy
Reforming Electricity Subsidies in Pakistan : Measures to Protect the Poor
geographic_facet South Asia
Pakistan
relation World Bank Policy Paper Series on Pakistan;PK 24/12
description As part of its energy sector reforms, the Government of Pakistan plans to reduce spending on electricity subsidies to 0.3-0.4 percent of gross domestic product (GDP) by mid-2016. The reforms will alleviate a major constraint on the government's budget. However, they will necessitate increases in the price of electricity, which have the potential to measurably reduce the welfare of the poor. The government will need to carefully design the price increases and provide associated compensation to avoid this outcome. This paper demonstrates that that it is possible for the government to protect the poor against most of the costs of the reform while at the same time improving the targeting of remaining subsidy expenditures. Measures that can be taken include targeting subsidies based on poverty scores and providing targeted cash compensation to poor households. The authors illustrate how these measures can be implemented, and estimate their associated welfare impacts.
format Economic & Sector Work
author Walker, Thomas
Sahin, Sebnem
Saqib, Mohammad
Mayer, Kristy
author_facet Walker, Thomas
Sahin, Sebnem
Saqib, Mohammad
Mayer, Kristy
author_sort Walker, Thomas
title Reforming Electricity Subsidies in Pakistan : Measures to Protect the Poor
title_short Reforming Electricity Subsidies in Pakistan : Measures to Protect the Poor
title_full Reforming Electricity Subsidies in Pakistan : Measures to Protect the Poor
title_fullStr Reforming Electricity Subsidies in Pakistan : Measures to Protect the Poor
title_full_unstemmed Reforming Electricity Subsidies in Pakistan : Measures to Protect the Poor
title_sort reforming electricity subsidies in pakistan : measures to protect the poor
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2014/06/23853273/reforming-electricity-subsidies-pakistan-measures-protect-poor
http://hdl.handle.net/10986/21569
_version_ 1764448668844294144