An evaluation of the Welfare impacts of electricity tariff reforms and alternative compensating mechanisms in Tajikistan
Gassmann, Franziska, Coady, David and Klytchnikova, Irina (2005). An evaluation of the Welfare impacts of electricity tariff reforms and alternative compensating mechanisms in Tajikistan. N/A.
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Sub-type Working paper Author Gassmann, Franziska
Coady, David
Klytchnikova, IrinaTitle An evaluation of the Welfare impacts of electricity tariff reforms and alternative compensating mechanisms in Tajikistan Publication Date 2005 Place of Publication N/A Publisher N/A Pages N/A Abstract This paper analyzes the effects of the energy price reform on household energy consumption in Tajikistan and alternative compensatory mechanisms to support the most vulnerable households. Electricity consumption is low by Western standard, but is also restricted by supply constraints in the from of frequent service interruptions. While improving the service quality would result in an increase in consumption in general, this does not hold for the poorest households because energy tariffs are high relative to their income. The current energy compensation program for the poor is insufficiently targeted. Eligibility is assessed based on reported total household income and the average wage per rayon. Linking the eligibility threshold to the minimum wage and adjusting household income for size would already result in an improvement of the targeting efficiency. Using data from the Tajik Living Standard Survey (2003) we construct a consumption model and simulate alternative compensation mechanisms targeted to support the most vulnerable households. The performance of the current compensation programs for the poorest is compared with alternative options (lifeline tariffs, unified social assistance benefit) and different targeting methods (revised eligibility rules, proxy-means targeting). Keywords: energy reform, poverty, social assistance, targeting Copyright Holder N/A Copyright Year 2005 Copyright type All rights reserved -
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