12-09-2018, 10:47 AM
Infrastructure Reform, Better Subsidies, and the Information Deficit
Andres Gomez, Vivien Foster
There are three types of information required to make informed choices on subsidy and other -policies in the water sector. These are:
Willingness-to-pay data. Willingness to pay is the maximum amount that a household would be prepared to spend to secure access to a given quantity of the service Thus, in economic terms, it represents the limit of affordability of the service.
A reasonable rule would be to set subsidies to cover the shortfall between a vulnerable household's willingness to pay for a basic level of consumption and the associated bill.
Water consumption data. These describe the pattern of demand for different types of households. They can be used to establish the basic consumption level that will be subsidized. Water consumption data are also essential for establishing the distributional incidence of cross-subsidy schemes such as rising block tariffs.
Socioeconomic data. These should ideally include household income or expenditure levels, poverty lines, and receipt of other welfare benefits, as well as general indicators of basic needs, such as the ,quality of housing and its associated facilities, and family wealth, such as durable goods ownership and the property value of the dwelling......
To Read more...
Infrastructure Reform, Better Subsidies, and the Information Deficit.pdf Size: 913.17 KB Downloads: 13
Taken from View point Note No. 212 (June 2000)
https://openknowledge.worldbank.org/handle/10986/11427
register as member and login to download attachment [pdf] by right-click the pdf link and Select “Save link as” use for Educational Purposes Only
Andres Gomez, Vivien Foster
There are three types of information required to make informed choices on subsidy and other -policies in the water sector. These are:
Willingness-to-pay data. Willingness to pay is the maximum amount that a household would be prepared to spend to secure access to a given quantity of the service Thus, in economic terms, it represents the limit of affordability of the service.
A reasonable rule would be to set subsidies to cover the shortfall between a vulnerable household's willingness to pay for a basic level of consumption and the associated bill.
Water consumption data. These describe the pattern of demand for different types of households. They can be used to establish the basic consumption level that will be subsidized. Water consumption data are also essential for establishing the distributional incidence of cross-subsidy schemes such as rising block tariffs.
Socioeconomic data. These should ideally include household income or expenditure levels, poverty lines, and receipt of other welfare benefits, as well as general indicators of basic needs, such as the ,quality of housing and its associated facilities, and family wealth, such as durable goods ownership and the property value of the dwelling......
To Read more...
Infrastructure Reform, Better Subsidies, and the Information Deficit.pdf Size: 913.17 KB Downloads: 13
Taken from View point Note No. 212 (June 2000)
https://openknowledge.worldbank.org/handle/10986/11427
register as member and login to download attachment [pdf] by right-click the pdf link and Select “Save link as” use for Educational Purposes Only