Designing Direct Subsidies for the Poor : A Water and Sanitation Case Study

Direct subsidies are an increasingly popular means of making infrastructure services more affordable to the poor. Under the direct subsidy approach, governments pay part of the water bill of poor households that meet certain criteria. This approach was first used in water sector reforms in Chile in the early 1990s and is an alternative to the traditional method in which governments pay subsidies directly to utilities, often allowing the price of water to fall below economic costs indiscriminately. This Note illustrates how simulation techniques can be used to inform the design of direct subsidy schemes, ensuring that they are both cost-effective and accurate in reaching the target population.

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Bibliographic Details
Main Authors: Foster, Vivien, Gómez-Lobos, Andrés, Halpern, Jonathan
Format: Viewpoint biblioteca
Language:English
Published: World Bank, Washington, DC 2000-06
Subjects:ADEQUATE WATER, ADMINISTRATIVE TERMS, ALTERNATIVE POLICY INSTRUMENTS, CONNECTION SUBSIDY, CONSUMERS, CONSUMPTION LEVELS, CUBIC METER, ECONOMIC CIRCUMSTANCES, ECONOMIC INCENTIVES, ECONOMICS, EFFICIENT USE OF WATER, EXTREME POVERTY, FIXED COSTS, HOUSEHOLDS, INCOME, INCOME LEVELS, LOW-INCOME HOUSEHOLDS, PER CAPITA INCOME, PERVERSE INCENTIVES, POLICY RESEARCH, POTABLE WATER, POVERTY LINE, PRICE OF WATER, PRIVATE SECTOR, PUBLIC HEALTH, PUBLIC WATER, SERVICE PROVISION, SEWERAGE NETWORK, SEWERAGE SERVICES, SIMULATION TECHNIQUES, TOILET FACILITIES, TOWNS, UTILITIES, UTILITY SERVICES, WATER COMPANIES, WATER CONSUMPTION, WATER SERVICES, WATER UTILITIES, WATER UTILITY, WILLINGNESS TO PAY TARGETED SUBSIDIES, PAYMENTS SYSTEMS, WATER PRICING, NEEDS ASSESSMENT, ELIGIBILITY CRITERIA, WATER SERVICE CONNECTIONS, SEWERAGE, SURVEY DATA, HOUSEHOLD INCOME, HOUSEHOLD EXPENDITURE SURVEYS, ADMINISTRATIVE COSTS, INTERVIEWS, SIMULATIONS,
Online Access:http://documents.worldbank.org/curated/en/2000/06/729348/designing-direct-subsidies-poor-water-sanitation-case-study
http://hdl.handle.net/10986/11428
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