Residential Electricity Subsidies in Pakistan : Targeting, Welfare Impacts, and Options for Reform

Walker, Thomas ; Canpolat, Ezgi ; Khan, Farah Khalid ; Kryeziu, Adea

World Bank, Washington, DC

关键词: electric utilities;    subsidies;    safety nets;    welfare;    targeting;   

DOI  :  10.1596/1813-9450-7912
RP-ID  :  WPS7912

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines the economic andsocial implications of the current system of residentialelectricity subsidies in Pakistan, and assesses thepotential to improve the system's outcomes throughalternative targeting and program design. The analysis ismulti-disciplinary in nature, drawing on national householdsurvey data, electric company data on household electricityconsumption, a welfare database, and a speciallycommissioned qualitative assessment of household and serviceprovider attitudes and experiences. Affordability is onlyone of many concerns among electricity users, withreliability of supply and customer service being arguablymore important. The analysis finds that targeting could beimproved considerably by allocating subsidies according toproxy-means test scores using an existing nationalproxy-means test database. Providing a flat credit ratherthan a price subsidy could also alleviate certain governanceconcerns. The paper concludes with some guidance on how tocarry out these reforms based on international experience.