Measuring the Impact of Energy Reform : Practical Options
Government interventions in energy markets have many effects on the poor. But there has been little measurement of these effects, making it hard to know exactly what the effects of a project have been, and hard to compare those of different interventions. This could be rectified by building impact indicators into energy projects at the design phase--and doing so consistently and systematically, across countries and over time. This Note discusses the development of suitable indicators. First, agreement is needed on workable definitionsof poverty and what would constitute welfare improvements for the poor. Then there must be explicit hypotheses on how specific elements of energy projects, individually or together, affect the poor. Finally, the indicators must be based on data tha can be realistically be collected in real-life low-income communities, in real-life developing countries.
| Summary: | Government interventions in energy
markets have many effects on the poor. But there has been
little measurement of these effects, making it hard to know
exactly what the effects of a project have been, and hard to
compare those of different interventions. This could be
rectified by building impact indicators into energy projects
at the design phase--and doing so consistently and
systematically, across countries and over time. This Note
discusses the development of suitable indicators. First,
agreement is needed on workable definitionsof poverty and
what would constitute welfare improvements for the poor.
Then there must be explicit hypotheses on how specific
elements of energy projects, individually or together,
affect the poor. Finally, the indicators must be based on
data tha can be realistically be collected in real-life
low-income communities, in real-life developing countries. |
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