Affordability of water supply in Mongolia: empirical lessons for measuring affordability

Gawel, Erik; Sigel, Katja; Bretschneider, Wolfgang

doi:10.2166/wp.2012.192

Cited by 40 publications

(56 citation statements)

References 28 publications

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“…101 An example is the 10% measure that is used in the United Kingdom to evaluate the incidence of fuel poverty.…”

Section: Affordability Of Energy Services and Povertymentioning

confidence: 99%

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Heindl,

LLschel

2015

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households Andreas Löschel University of Münster February 2015 This paper is also available as: OECD Issue Note -Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households-AbstractThis paper reviews the literature on distributional effects of energy and carbon taxation with focus on microsimulation models. Most studies find that direct energy and carbon taxation tends to be regressive. Regressive effects occur mostly with respect to taxation of electricity or space heating. Taxation of transportation fuels show less regressive, neutral, or even progressive effects. Adequate revenue recycling often allows for neutralisation or full elimination of regressive effects so that energy and carbon tax reforms can be progressive. Some studies find evidence for the existence of a double dividend. There seems to be an efficiency-equity trade-off in revenue recycling, i.e. whether to foster growth or to assist low-income households. While a large number of studies on advanced economies are available, there clearly is a gap with regard to evidence for developing countries. Another gap relates to the lack of documentation on the challenges of incorporating macroeconomic models and long-term modelling perspectives in microsimulation. Both aspects can be of great importance with respect to the design of green growth policies. Thoughtful incorporation of social considerations, including aspects of poverty in modelling approaches could enhance the existing instruments of exante policy assessments since poverty is a tangible concept which is well-known, understandable, and openly observable for citizens and policy makers.

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“…101 An example is the 10% measure that is used in the United Kingdom to evaluate the incidence of fuel poverty.…”

Section: Affordability Of Energy Services and Povertymentioning

confidence: 99%

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Heindl,

LLschel

2015

SSRN Journal

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“…An affordability issue arises when this ratio exceeds some normatively set threshold, which is typically set between two to five percent (Komives et al, 2005). Gawel et al (2013) show that this approach has important conceptual shortcomings as it does not account for relative preferences for water and other commodities and also neglects that even poor households may consume more water than necessary.…”

Section: 1 Affordability Measuresmentioning

confidence: 99%

Distributional effects of water tariff reforms – An empirical study for Lima, Peru

Barde

Lehmann

2014

Water Resources and Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis study analyzes the affordability and distributional implications of water tariff reforms for poor water customers under means-tested tariffs in comparison to increasing block tariffs (IBTs) using volumetric targeting. For this purpose, we employ a unique data set for Lima, Peru. Our analysis reveals that from a pro-poor perspective, the performance of means-tested tariffs is mixed. On the one hand, they distribute more income to poor households than the IBTs, given the assumption that the overall revenue to the water supplier remains constant.On the other hand, the share of poor customers who actually benefit from water subsidies declines with means-testing. Nevertheless, means-tested tariffs clearly outperform IBTs in terms of excluding non-poor customers from being subsidized. These findings should be generalized with care as the performance of the tariff crucially depends on the cut-off value for cross-subsidies and the block prices chosen under volumetric targeting and on the design of the means-test. Our analysis further suggests that a proper assessment of individual welfare effects should take household size into account and rest on a broad set of affordability and distributional indicators. Interestingly, our results are relatively insensitive to the price elasticity of water demand.

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“…Affordability is more difficult to operationalize. Gawel et al find that the widely used conventional affordability ratio (CAR), which defines water as affordable if less than a certain percentage of household income is spent on it, has both the risks of under-and overstating actual affordability problems in different situations [36,37]. The authors point to the fact that the CAR would, for example, diagnose low-income households to have no affordability problem if their consumption was low enough, while it might categorize the costs of a very wasteful water consumption of a high-income household as unaffordable.…”

Section: Research Objectivesmentioning

confidence: 99%

Increasing Block Tariffs in an Arid Developing Country: A Discrete/Continuous Choice Model of Residential Water Demand in Jordan

Klassert

Sigel

Klauer

et al. 2018

Water

Self Cite

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Arid developing countries face growing challenges from water scarcity, which are exacerbated by deficient piped water supply infrastructures. Increasing block tariffs (IBTs), charging higher rates with increasing water consumption, can potentially reconcile cost recovery to finance these infrastructures with an equitable and affordable sharing of the cost burden. A firm understanding of the impacts of varying prices and socio-economic conditions on residential water demand is necessary for designing IBTs that promote these objectives. Consistently estimating water demand under an IBT requires a discrete/continuous choice (DCC) model. Despite this, few econometric studies of arid developing countries have applied this state-of-the-art approach. This paper applies a DCC model to estimate residential water demand under IBTs in the severely water-stressed country of Jordan, using 15,811 country-wide household-level observations from five years up to 2013. We extend Hewitt and Hanemann's original DCC formulation in order to accommodate IBTs featuring a linearly progressive tariff block. We then use the resulting demand function to assess Jordan's 2013 IBTs and alternative IBT designs. Under the estimated price elasticities, very few IBT designs achieve a full recovery of the financial costs of water provision, but we still identify a potential to improve cost recovery and affordability.

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Affordability of water supply in Mongolia: empirical lessons for measuring affordability

Cited by 40 publications

References 28 publications

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Distributional effects of water tariff reforms – An empirical study for Lima, Peru

Increasing Block Tariffs in an Arid Developing Country: A Discrete/Continuous Choice Model of Residential Water Demand in Jordan

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