'Utility Pricing and the Poor' evaluates the 1999 electricity tariff increase and the potential for improved water-sector cost recovery, with a particular focus on service accessibility and affordability for the poor. A two-stage approach is recommended. In the first stage, revenues should be increased by ensuring payment from households that have reliable service but are not paying their bills. After collection capacity is strengthened, the utility should implement a program of tariff adjustment, based on improved service and meter-based billing.
Addressing the poverty and distributional impacts of carbon pricing reforms is critical for the success of ambitious actions in the fight against climate change. This paper uses a simple framework to systematically review the channels through which carbon pricing can potentially affect poverty and inequality. It finds that the channels differ in important ways along several dimensions. The paper also identifies several key gaps in the current literature and discusses some considerations on how policy designs could take into account the attributes of the channels in mitigating the impacts of carbon pricing reforms on households.
Do Latin America's poor households lose from the privatization of infrastructure? How can policymakers minimize the risk of losses while promoting competition and private financing of infrastructure?
Prior to the dissolution of the communist state, utility prices were driven by political priorities in Central and Eastern Europe and the former Soviet Union. Utility prices were kept artificially low until the early 1990s. When the cost of these across-the-board price subsidies became unaffordable, one government after another decided to bring residential tariffs closer to supply costs. The resulting price adjustment process, however, turned out to be more painful than originally expected. Required large increase in the prices of utility services coincided with a decrease in household income. The household income decline paralleled increasing income polarization. As a result of these two trends, the percentage of the poor within the overall population reached alarming proportions in many countries. Paying utility bills became a major challenge for the rapidly growing army of poor households. Some governments simply pressured utility managers to be lenient with households who did not pay their utility bills. By the middle of the 1990s, most governments recognized that they could not afford leniency. They started to experiment with various subsidy schemes aimed at low income households. To help decision makers choose the best mechanism that suits their specific needs and priorities, 'Maintaining Utility Services for the Poor' provides a conceptual framework and methodology for the evaluation of utility subsidy mechanisms. It also presents the results of applying this methodology in Poland and Russia.
Drawing on cases from electricity distribution and other infrastructure industries, and from experiences spanning Asia, Africa and Latin America, this book examines new business models to bring basic utility services to the four billion people comprising the base of the socio-economic pyramid. Access to utilities is key for achieving economic growth and improving the lives of citizens worldwide. Throughout the world, people continue to suffer severe electricity shortages and lack potable water. Contributors to this work, who include academics and practitioners from the World Bank, the Inter-American Development Bank, USAID, the AES Corporation and several academic institutions, show that access to utilities is key for achieving economic growth and improving the lives of citizens worldwide. They offer analysis of business models in utilities serving the bottom of the pyramid (BOP) through market mechanisms and showcase innovations in organizational processes and services in order to effectively reach the BOP. The book also discusses the key factors in developing profitable business ventures that can engage the world's four billion poor. The book is aimed at both academics with an interest in applied research in business and the role of markets in servicing the poor worldwide, practitioners, public sector organizations and NGOs engaged in supplying,financing, and managing microcredit and market initiatives with low-income sectors, and international utility companies and other firms seeking to expand in emerging markets. In addition, the book will be useful as a text in a variety of courses and will give readers a deeper understanding of the potential for business to alleviate poverty, as well as inspire a deeper involvement in social issues as a career alternative or voluntary activity.
Taxing behavior deemed "politically incorrect" has long been a convenient way for politicians to fund programs benefiting special interest groups, to the public's disadvantage. Government policy toward various goods - drugs, tobacco and alcohol, for example - has been locked into a regulatory cycle of tax and taboo. Support for legalizing other substances is buttressed by the revenue-generating power of so-called "sin" taxesi And the products subjected to excise taxation have varied from soft drinks, fishing gear and margarine to airline tickets, telephone calls and gasoline. Taxing Choice thoroughly addresses the costs and benefits of these predatory public policies.Shughart notes that the record of such punitive selective taxation has been anything but successful, hindering economic progress and failing to deliver the promised social benefits. In addition, the costs of selective taxes fall disproportionately on lower-income people, while more politically powerful interest groups benefit. At the same time, such policies are a poor way to raise funding for public services, and foster political corruption and self-serving bureaucracies accountable to no one. Indeed, policies discriminating against certain products may represent ominous trends easily extended into virtually every facet of people's lives. One can envision policies proscribing foods, sun bathing, obesity, and even books, films, and political and religious beliefs deemed "dangerous."Part I is devoted to the political economy of selective taxation. Contributors trace the history and politics of selective excise taxes in the United States, discussing the range of products that have been subject to such taxation from the founding period to the present. Part II explains how these taxes emerge in a political marketplace with opposing pressure groups scrambling for wealth transfers in their own favor. Part III looks at taxes on specific products as well as such banning policies as Prohibition and the war on drugs. Constitutional, economic, and civil liberty issues, including civil asset forfeiture and product liability, are discussed in Part IV. With the accelerating national debate over tax reform and the downsizing of government, Taxing Choice is a timely and far-reaching contribution to a debate of great interest to economists, policymakers, historians, sociologists, and taxpayers in general.
One of the consequences of the post-socialist transformation of Eastern and Central Europe and the Former Soviet Union is the emergence of energy poverty, a condition where households are living in inadequately heated homes. This book provides the first full-length examination of the causes, consequences and patterns of energy poverty in former Communist countries. Based on empirical evidence that spans different spatial contexts and scales and compares these with other parts of the world, the book links household-level deprivation with broader organizational and political dynamics. The book also analyzes the lived experiences of scarcity and marginalization with the aid of two in-depth country studies. Furthermore, it identifies the socio-demographic factors that distinguish energy-poor families from the rest of the population, while stressing the need for a comprehensive range of policy tools to address energy poverty. As the issue of energy supply from the former Soviet Union is likely to become one of the most important economic and political problems across the whole of Europe within the next couple of decades, the book argues that there is a direct link between the energy crises experienced by the region, and the social aspects of energy use in households.
