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

To guarantee adequate and affordable water and sanitation services for vulnerable households, Chile introduced an individual means-tested water consumption subsidy a decade ago. Although the public authorities determine how the subsidy is applied, the mostly private companies deliver the service - under a scheme with built-in incentives to ensure cost-effective service delivery by the companies and low wastage by the customers. This case study reviews Chile's experience of using tax-funded subsidy payments, contingent on delivery of service by water companies. Funding the subsidy through general taxation allows the regulator to set tariffs according to economic criteria. Targeting allows scarce resources to be directed to those who need subsidies most. Both characteristics reduce the financial burden on the government as compared with the universal subsidy used in the past.

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Bibliographic Details
Main Author: Gomez-Lobo, Andres
Format: Viewpoint biblioteca
Language:English
Published: World Bank, Washington, DC 2001-06
Subjects:AFFORDABLE WATER, CENTRAL GOVERNMENT, CONNECTION SUBSIDY, CROWDING, CUBIC METER, CUBIC METERS, DEBT, DURABLE GOODS, FINANCIAL INCENTIVES, HOUSEHOLD INCOME, HOUSEHOLDS, INCOME, LIVING CONDITIONS, MUNICIPAL LEVEL, MUNICIPALITIES, PRIVATE COMPANIES, PRIVATE SECTOR, REGIONAL DEVELOPMENT, RESOURCE USE, SANITATION SECTOR, SANITATION SERVICES, SERVICE DELIVERY, SERVICE PROVIDER, SEWERAGE BILL, TARIFF SETTING, TRANSFER PAYMENTS, URBAN AREAS, WASTAGE, WATER CHARGES, WATER COMPANIES, WATER COMPANY, WATER CONSUMPTION, WATER PRICES, WATER SERVICES, WATER TARIFFS, WILLINGNESS TO PAY WATER SUPPLY & SANITATION, VULNERABLE GROUPS, SUBSIDIES, INCENTIVES, TARGETING,
Online Access:http://documents.worldbank.org/curated/en/2001/06/1490091/incentive-based-subsidies-designing-output-based-subsidies-water-consumption
http://hdl.handle.net/10986/11380
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spelling dig-okr-10986113802021-06-14T10:59:22Z Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption Gomez-Lobo, Andres AFFORDABLE WATER CENTRAL GOVERNMENT CONNECTION SUBSIDY CROWDING CUBIC METER CUBIC METERS DEBT DURABLE GOODS FINANCIAL INCENTIVES HOUSEHOLD INCOME HOUSEHOLDS INCOME LIVING CONDITIONS MUNICIPAL LEVEL MUNICIPALITIES PRIVATE COMPANIES PRIVATE SECTOR REGIONAL DEVELOPMENT RESOURCE USE SANITATION SECTOR SANITATION SERVICES SERVICE DELIVERY SERVICE PROVIDER SEWERAGE BILL TARIFF SETTING TRANSFER PAYMENTS URBAN AREAS WASTAGE WATER CHARGES WATER COMPANIES WATER COMPANY WATER CONSUMPTION WATER PRICES WATER SERVICES WATER TARIFFS WILLINGNESS TO PAY WATER SUPPLY & SANITATION WATER CONSUMPTION VULNERABLE GROUPS SUBSIDIES WATER TARIFFS WATER PRICES INCENTIVES TARGETING To guarantee adequate and affordable water and sanitation services for vulnerable households, Chile introduced an individual means-tested water consumption subsidy a decade ago. Although the public authorities determine how the subsidy is applied, the mostly private companies deliver the service - under a scheme with built-in incentives to ensure cost-effective service delivery by the companies and low wastage by the customers. This case study reviews Chile's experience of using tax-funded subsidy payments, contingent on delivery of service by water companies. Funding the subsidy through general taxation allows the regulator to set tariffs according to economic criteria. Targeting allows scarce resources to be directed to those who need subsidies most. Both characteristics reduce the financial burden on the government as compared with the universal subsidy used in the past. 2012-08-13T14:54:40Z 2012-08-13T14:54:40Z 2001-06 http://documents.worldbank.org/curated/en/2001/06/1490091/incentive-based-subsidies-designing-output-based-subsidies-water-consumption Viewpoint. -- Note no. 232 (June 2001) http://hdl.handle.net/10986/11380 English Viewpoint CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research Latin America & Caribbean Chile
institution Banco Mundial
collection DSpace
country Estados Unidos
countrycode US
component Bibliográfico
access En linea
databasecode dig-okr
tag biblioteca
region America del Norte
libraryname Biblioteca del Banco Mundial
language English
topic AFFORDABLE WATER
CENTRAL GOVERNMENT
CONNECTION SUBSIDY
CROWDING
CUBIC METER
CUBIC METERS
DEBT
DURABLE GOODS
FINANCIAL INCENTIVES
HOUSEHOLD INCOME
HOUSEHOLDS
INCOME
LIVING CONDITIONS
MUNICIPAL LEVEL
MUNICIPALITIES
PRIVATE COMPANIES
PRIVATE SECTOR
REGIONAL DEVELOPMENT
RESOURCE USE
SANITATION SECTOR
SANITATION SERVICES
SERVICE DELIVERY
SERVICE PROVIDER
SEWERAGE BILL
TARIFF SETTING
TRANSFER PAYMENTS
URBAN AREAS
WASTAGE
WATER CHARGES
WATER COMPANIES
WATER COMPANY
WATER CONSUMPTION
WATER PRICES
WATER SERVICES
WATER TARIFFS
WILLINGNESS TO PAY WATER SUPPLY & SANITATION
WATER CONSUMPTION
VULNERABLE GROUPS
SUBSIDIES
WATER TARIFFS
WATER PRICES
INCENTIVES
TARGETING
AFFORDABLE WATER
CENTRAL GOVERNMENT
CONNECTION SUBSIDY
CROWDING
CUBIC METER
CUBIC METERS
DEBT
DURABLE GOODS
FINANCIAL INCENTIVES
HOUSEHOLD INCOME
HOUSEHOLDS
INCOME
LIVING CONDITIONS
MUNICIPAL LEVEL
MUNICIPALITIES
PRIVATE COMPANIES
PRIVATE SECTOR
REGIONAL DEVELOPMENT
RESOURCE USE
SANITATION SECTOR
SANITATION SERVICES
SERVICE DELIVERY
SERVICE PROVIDER
SEWERAGE BILL
TARIFF SETTING
TRANSFER PAYMENTS
URBAN AREAS
WASTAGE
WATER CHARGES
WATER COMPANIES
WATER COMPANY
WATER CONSUMPTION
WATER PRICES
WATER SERVICES
WATER TARIFFS
WILLINGNESS TO PAY WATER SUPPLY & SANITATION
WATER CONSUMPTION
VULNERABLE GROUPS
SUBSIDIES
WATER TARIFFS
WATER PRICES
INCENTIVES
TARGETING
spellingShingle AFFORDABLE WATER
CENTRAL GOVERNMENT
CONNECTION SUBSIDY
CROWDING
CUBIC METER
CUBIC METERS
DEBT
DURABLE GOODS
FINANCIAL INCENTIVES
HOUSEHOLD INCOME
HOUSEHOLDS
INCOME
LIVING CONDITIONS
MUNICIPAL LEVEL
MUNICIPALITIES
PRIVATE COMPANIES
PRIVATE SECTOR
REGIONAL DEVELOPMENT
RESOURCE USE
SANITATION SECTOR
SANITATION SERVICES
SERVICE DELIVERY
SERVICE PROVIDER
SEWERAGE BILL
TARIFF SETTING
TRANSFER PAYMENTS
URBAN AREAS
WASTAGE
WATER CHARGES
WATER COMPANIES
WATER COMPANY
WATER CONSUMPTION
WATER PRICES
WATER SERVICES
WATER TARIFFS
WILLINGNESS TO PAY WATER SUPPLY & SANITATION
WATER CONSUMPTION
VULNERABLE GROUPS
SUBSIDIES
WATER TARIFFS
WATER PRICES
INCENTIVES
TARGETING
AFFORDABLE WATER
CENTRAL GOVERNMENT
CONNECTION SUBSIDY
CROWDING
CUBIC METER
CUBIC METERS
DEBT
DURABLE GOODS
FINANCIAL INCENTIVES
HOUSEHOLD INCOME
HOUSEHOLDS
INCOME
LIVING CONDITIONS
MUNICIPAL LEVEL
MUNICIPALITIES
PRIVATE COMPANIES
PRIVATE SECTOR
REGIONAL DEVELOPMENT
RESOURCE USE
SANITATION SECTOR
SANITATION SERVICES
SERVICE DELIVERY
SERVICE PROVIDER
SEWERAGE BILL
TARIFF SETTING
TRANSFER PAYMENTS
URBAN AREAS
WASTAGE
WATER CHARGES
WATER COMPANIES
WATER COMPANY
WATER CONSUMPTION
WATER PRICES
WATER SERVICES
WATER TARIFFS
WILLINGNESS TO PAY WATER SUPPLY & SANITATION
WATER CONSUMPTION
VULNERABLE GROUPS
SUBSIDIES
WATER TARIFFS
WATER PRICES
INCENTIVES
TARGETING
Gomez-Lobo, Andres
Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption
description To guarantee adequate and affordable water and sanitation services for vulnerable households, Chile introduced an individual means-tested water consumption subsidy a decade ago. Although the public authorities determine how the subsidy is applied, the mostly private companies deliver the service - under a scheme with built-in incentives to ensure cost-effective service delivery by the companies and low wastage by the customers. This case study reviews Chile's experience of using tax-funded subsidy payments, contingent on delivery of service by water companies. Funding the subsidy through general taxation allows the regulator to set tariffs according to economic criteria. Targeting allows scarce resources to be directed to those who need subsidies most. Both characteristics reduce the financial burden on the government as compared with the universal subsidy used in the past.
format Publications & Research :: Viewpoint
topic_facet AFFORDABLE WATER
CENTRAL GOVERNMENT
CONNECTION SUBSIDY
CROWDING
CUBIC METER
CUBIC METERS
DEBT
DURABLE GOODS
FINANCIAL INCENTIVES
HOUSEHOLD INCOME
HOUSEHOLDS
INCOME
LIVING CONDITIONS
MUNICIPAL LEVEL
MUNICIPALITIES
PRIVATE COMPANIES
PRIVATE SECTOR
REGIONAL DEVELOPMENT
RESOURCE USE
SANITATION SECTOR
SANITATION SERVICES
SERVICE DELIVERY
SERVICE PROVIDER
SEWERAGE BILL
TARIFF SETTING
TRANSFER PAYMENTS
URBAN AREAS
WASTAGE
WATER CHARGES
WATER COMPANIES
WATER COMPANY
WATER CONSUMPTION
WATER PRICES
WATER SERVICES
WATER TARIFFS
WILLINGNESS TO PAY WATER SUPPLY & SANITATION
WATER CONSUMPTION
VULNERABLE GROUPS
SUBSIDIES
WATER TARIFFS
WATER PRICES
INCENTIVES
TARGETING
author Gomez-Lobo, Andres
author_facet Gomez-Lobo, Andres
author_sort Gomez-Lobo, Andres
title Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption
title_short Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption
title_full Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption
title_fullStr Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption
title_full_unstemmed Incentive-Based Subsidies : Designing Output-Based Subsidies for Water Consumption
title_sort incentive-based subsidies : designing output-based subsidies for water consumption
publisher World Bank, Washington, DC
publishDate 2001-06
url http://documents.worldbank.org/curated/en/2001/06/1490091/incentive-based-subsidies-designing-output-based-subsidies-water-consumption
http://hdl.handle.net/10986/11380
work_keys_str_mv AT gomezloboandres incentivebasedsubsidiesdesigningoutputbasedsubsidiesforwaterconsumption
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