Magnitude and Distribution of Electricity and Water Subsidies for Households in Addis Ababa, Ethiopia
In Addis Ababa, an increasing block tariff has been used to calculate households' monthly bills for electricity and water services. This study estimates the magnitudes of the combined water and electricity subsidies received by households with...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/792441569503324815/Magnitude-and-Distribution-of-Electricity-and-Water-Subsidies-for-Households-in-Addis-Ababa-Ethiopia http://hdl.handle.net/10986/32455 |
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okr-10986-324552022-09-20T00:13:15Z Magnitude and Distribution of Electricity and Water Subsidies for Households in Addis Ababa, Ethiopia Cardenas, Helena Whittington, Dale SUBSIDIES ELECTRICITY CONSUMPTION BLOCK TARIFF SUBSIDY LEAKAGE SUBSIDY INCIDENCE WATER CONSUMPTION RESIDENTIAL CONSUMPTION In Addis Ababa, an increasing block tariff has been used to calculate households' monthly bills for electricity and water services. This study estimates the magnitudes of the combined water and electricity subsidies received by households with private connections to the electricity grid and piped water network in 2016, and it evaluates the distribution of these subsidies among wealth groups. Customer billing data supplied by utility companies are matched with socioeconomic information collected through a household survey. It is the first detailed analysis of the combined effects of increasing block tariffs for electricity and water in an urban area in a developing country. The results show that the combined subsidies are large. The average household receives a subsidy of US$26 per month, about 6 percent of household income. The findings also show that electricity and water subsidies under the increasing block tariff disproportionately accrue to richer households, with even less targeting when both sectors are considered jointly. The poorest quintile receives 12 percent of the total subsidies for electricity and water services, while the richest quintile receives 31 percent. The water increasing block tariff's targeting of subsidies was somewhat worse than that of the electricity increasing block tariff. 2019-09-26T18:41:17Z 2019-09-26T18:41:17Z 2019-09 Working Paper http://documents.worldbank.org/curated/en/792441569503324815/Magnitude-and-Distribution-of-Electricity-and-Water-Subsidies-for-Households-in-Addis-Ababa-Ethiopia http://hdl.handle.net/10986/32455 English Policy Research Working Paper;No. 9025 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Ethiopia |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
SUBSIDIES ELECTRICITY CONSUMPTION BLOCK TARIFF SUBSIDY LEAKAGE SUBSIDY INCIDENCE WATER CONSUMPTION RESIDENTIAL CONSUMPTION |
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SUBSIDIES ELECTRICITY CONSUMPTION BLOCK TARIFF SUBSIDY LEAKAGE SUBSIDY INCIDENCE WATER CONSUMPTION RESIDENTIAL CONSUMPTION Cardenas, Helena Whittington, Dale Magnitude and Distribution of Electricity and Water Subsidies for Households in Addis Ababa, Ethiopia |
| geographic_facet |
Africa Ethiopia |
| relation |
Policy Research Working Paper;No. 9025 |
| description |
In Addis Ababa, an increasing block
tariff has been used to calculate households' monthly
bills for electricity and water services. This study
estimates the magnitudes of the combined water and
electricity subsidies received by households with private
connections to the electricity grid and piped water network
in 2016, and it evaluates the distribution of these
subsidies among wealth groups. Customer billing data
supplied by utility companies are matched with socioeconomic
information collected through a household survey. It is the
first detailed analysis of the combined effects of
increasing block tariffs for electricity and water in an
urban area in a developing country. The results show that
the combined subsidies are large. The average household
receives a subsidy of US$26 per month, about 6 percent of
household income. The findings also show that electricity
and water subsidies under the increasing block tariff
disproportionately accrue to richer households, with even
less targeting when both sectors are considered jointly. The
poorest quintile receives 12 percent of the total subsidies
for electricity and water services, while the richest
quintile receives 31 percent. The water increasing block
tariff's targeting of subsidies was somewhat worse than
that of the electricity increasing block tariff. |
| format |
Working Paper |
| author |
Cardenas, Helena Whittington, Dale |
| author_facet |
Cardenas, Helena Whittington, Dale |
| author_sort |
Cardenas, Helena |
| title |
Magnitude and Distribution of Electricity and Water Subsidies for Households in Addis Ababa, Ethiopia |
| title_short |
Magnitude and Distribution of Electricity and Water Subsidies for Households in Addis Ababa, Ethiopia |
| title_full |
Magnitude and Distribution of Electricity and Water Subsidies for Households in Addis Ababa, Ethiopia |
| title_fullStr |
Magnitude and Distribution of Electricity and Water Subsidies for Households in Addis Ababa, Ethiopia |
| title_full_unstemmed |
Magnitude and Distribution of Electricity and Water Subsidies for Households in Addis Ababa, Ethiopia |
| title_sort |
magnitude and distribution of electricity and water subsidies for households in addis ababa, ethiopia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/792441569503324815/Magnitude-and-Distribution-of-Electricity-and-Water-Subsidies-for-Households-in-Addis-Ababa-Ethiopia http://hdl.handle.net/10986/32455 |
| _version_ |
1764476579841310720 |