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 |
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| Format: | Viewpoint
biblioteca
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| Language: | English |
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| Published: |
World Bank, Washington, DC
2001-06
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| 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, |
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| 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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