Residential Electricity Subsidies in
Mexico : Exploring Options for Reform and for Enhancing the
Impact on the Poor

Residential Electricity Subsidies in Mexico : Exploring Options for Reform and for Enhancing the Impact on the Poor

This report addresses a pressing issue in Mexico's electricity sector the large and growing subsidies to residential consumers and their regressive incidence across different segments of the population. It responds to requests from the Ministr...

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Bibliographic Details
Main Authors:	Komives, Kristin, Johnson, Todd M., Halpern, Jonathan D., Aburto, Jose Luis, Scott, John R.
Format:	Publication
Language:	English
Published:	World Bank 2012
Subjects:	ACCESS TO ELECTRICITY ACCOUNTING AGRICULTURE AIR QUALITY APPROACH AVERAGE COSTS BENCHMARKING BENEFICIARIES CALCULATION CALCULATIONS CASH SUBSIDY CASH TRANSFER CLIMATE CHANGE CONNECTED HOUSEHOLDS CONSUMER CONSUMER BEHAVIOR CONSUMER GROUPS CONSUMPTION LEVELS CONTRIBUTION CONTRIBUTIONS COST ESTIMATE COST OF ELECTRICITY COST RECOVERY CURRENCY DEMAND ELASTICITY DEMAND FOR ELECTRICITY DEPRECIATION DIESEL DISPOSABLE INCOMES DISTRIBUTION LOSSES DISTRIBUTION OF COSTS DISTRIBUTION OF ELECTRICITY DIVIDENDS ECONOMIC COMPETITIVENESS ECONOMIC COST ECONOMIC EFFICIENCY ECONOMIC PROGRAMS EFFICIENCY IMPROVEMENTS ELECTRIC UTILITIES ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY DEMAND ELECTRICITY PRICES ELECTRICITY SALES ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRICITY UTILITIES ELECTRICITY UTILITY EMISSIONS EMISSIONS FROM POWER PLANTS EMPLOYMENT ENERGY CONSUMPTION EXCHANGE RATE EXCHANGE RATES EXCLUSION FINANCES FINANCIAL COST FINANCIAL HEALTH FINANCIAL SITUATION FINANCIAL SUBSIDIES FINANCIAL SUSTAINABILITY FISCAL PERFORMANCE FUEL FUEL COSTS FUEL OIL FUELS GDP GENERATING CAPACITY GENERATION GOVERNMENT EXPENDITURES GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GROSS DOMESTIC PRODUCT HIGH GAS PRICES HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD INCOME INCOME INCOME GROUPS INCOME LEVEL INCOME LEVELS INEFFICIENCY INFERIOR GOODS INFLATION INVESTMENT PROGRAM JUDGMENT KILOWATT-HOUR LIVING STANDARDS LOW-INCOME LOW-INCOME CONSUMERS LOWER INCOME LOWER-INCOME POPULATION MARGINAL COST MARGINAL COST OF ELECTRICITY MARGINAL COSTS MERIT GOOD NATURAL GAS OIL PARTICULATES PEAK DEMAND PENSIONS POLLUTANTS POSITIVE EXTERNALITIES POWER POWER PRODUCER POWER SYSTEM PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE OF ELECTRICITY PRIMARY EDUCATION PUBLIC EXPENDITURE PURCHASES PURCHASING POWER RESIDENTIAL CONSUMERS RETIREMENT SAFETY NET SOCIAL FUND SOCIAL FUNDS SOCIOECONOMIC IMPACT SOURCE OF INFORMATION SUPPLY COSTS SUPPLY EFFICIENCY TARGETED SUBSIDIES TARIFF LEVELS TARIFF STRUCTURE TARIFF STRUCTURES TARIFF SYSTEM TARIFF SYSTEMS TAX TAX REBATES TEMPORARY EMPLOYMENT TOTAL COST TOTAL COSTS TRANSMISSION FACILITIES TRANSMISSION LOSSES UTILITY CHARGES VARIABLE COST WAGE WAGES WEB PAGE WORTH
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20090114003819 http://hdl.handle.net/10986/2584 http://hdl.handle.net/10986/5959

Description
Summary:	This report addresses a pressing issue in Mexico's electricity sector the large and growing subsidies to residential consumers and their regressive incidence across different segments of the population. It responds to requests from the Ministry of Energy to provide a preliminary assessment of alternatives to the current subsidy system, building on prior collaboration between the Government of Mexico and the World Bank on the distributional impact of public spending, the performance of conditional cash transfer programs and other poverty-targeted programs, and related work on pricing and subsidies for infrastructure services. This study was designed as the first phase of a multiphase program of collaborative analytical work. This first phase provides estimates of the distributional and fiscal performance of alternative subsidy targeting mechanisms to help inform discussion and deliberations on feasible goals and practical approaches over the medium term. A second phase will address transition paths, specific compensatory mechanisms, and decision processes for pursuing the options that the Mexican authorities deem most promising.

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