Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption

Gomez-Lobo, Andres

World Bank, Washington, DC

关键词: AFFORDABLE WATER;    CENTRAL GOVERNMENT;    CONNECTION SUBSIDY;    CROWDING;    CUBIC METER;   

RP-ID  :  22409

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

To guarantee adequate and affordablewater and sanitation services for vulnerable households,Chile introduced an individual means-tested waterconsumption subsidy a decade ago. Although the publicauthorities determine how the subsidy is applied, the mostlyprivate companies deliver the service - under a scheme withbuilt-in incentives to ensure cost-effective servicedelivery by the companies and low wastage by the customers.This case study reviews Chile's experience of usingtax-funded subsidy payments, contingent on delivery ofservice by water companies. Funding the subsidy throughgeneral taxation allows the regulator to set tariffsaccording to economic criteria. Targeting allows scarceresources to be directed to those who need subsidies most.Both characteristics reduce the financial burden on thegovernment as compared with the universal subsidy used inthe past.