<p>While consumer utility subsidies are widespread in both the water and electricity sectors, their effectiveness in reaching and distributing resources to the poor is the subject of much debate. 'Water, Electricity, and the Poor' brings together empirical evidence on subsidy performance across a wide range of countries. It documents the prevalence of consumer subsidies, provides a typology of the many variants found in the developing world, and presents a number of indicators useful in assessing the degree to which such subsidies benefit the poor, focusing on three key concepts: beneficiary incidence, benefit incidence, and materiality.</p>

Water, Electricity, and the Poor: Who Benefits from Utility Subsidies? (Directions in Development)

Business & Money

Wodon, Quentin

Foster, Vivien

Komives, Kristin

Halpern, Jonathan

Economics

World Bank Publications

<p>Large and growing subsidies to residential consumers in Mexico have become a major policy concern. This report explains the growth of subsidies, the current distribution of subsidies across income classes, and uses utility and household survey data to simulate how alternative subsidy mechanisms could improve distributional and fiscal performance. The goal is to help inform discussion in Mexico about how to reduce subsidies and redirect them toward the poor. The findings also offer lessons for other countries that are planning tariff reforms in their electricity sectors.</p>

Residential Electricity Subsidies in Mexico: Exploring Options for Reform and for Enhancing the Impact on the Poor (160) (World Bank Working Papers)

Johnson, Todd M.

SCOTT, JOHN R.

Halpern, Jonathan D.

Aburto, Jose Luis

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