Study of the Distributional Performance of Piped Water Consumption Subsidies in 10 Developing Countries

28 Pages Posted: 14 May 2020

See all articles by Laura Fernanda Abramovsky

Laura Fernanda Abramovsky

Institute for Fiscal Studies (IFS)

Luis Alberto Andres

World Bank

George Joseph

World Bank

Juan Pablo Rud

University of London, Royal Holloway College - Department of Economics

German Eduardo Sember

affiliation not provided to SSRN

Michael David Thibert

affiliation not provided to SSRN

Date Written: May 12, 2020

Abstract

This paper provides new evidence on how effectively piped water consumption subsidies are targeting poor households in 10 low- and middle-income countries around the world. The results suggest that, in these countries, existing tariff structures fall short of recovering the costs of service provision, and the resulting subsidies largely fail to achieve their goal of improving the accessibility and affordability of piped water for poor households. Instead, the majority of subsidies in all 10 countries are captured by the richest households. This is in part because the most vulnerable population segments typically face challenges in accessing and connecting to piped water services. The paper also reveals shortcomings in the design of the subsidies, which are conditional on poor households being connected to a piped network.

Keywords: Hydrology, Labor & Employment Law, Small Private Water Supply Providers, Sanitary Environmental Engineering, Health and Sanitation, Water Supply and Sanitation Economics, Town Water Supply and Sanitation, Engineering, Water and Human Health, Environmental Engineering, Sanitation and Sewerage

Suggested Citation

Abramovsky, Laura Fernanda and Andres, Luis Alberto and Joseph, George and Rud, Juan Pablo and Sember, German Eduardo and Thibert, Michael David, Study of the Distributional Performance of Piped Water Consumption Subsidies in 10 Developing Countries (May 12, 2020). World Bank Policy Research Working Paper No. 9245, Available at SSRN: https://ssrn.com/abstract=3599575

Laura Fernanda Abramovsky (Contact Author)

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Luis Alberto Andres

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

George Joseph

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Juan Pablo Rud

University of London, Royal Holloway College - Department of Economics ( email )

Royal Holloway College
Egham
Surrey, Surrey TW20 0EX
United Kingdom

German Eduardo Sember

affiliation not provided to SSRN

No Address Available

Michael David Thibert

affiliation not provided to SSRN

No Address Available

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