Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro

25 Pages Posted: 20 Apr 2016

See all articles by Patricia Silva

Patricia Silva

World Bank

Irina Klytchnikova

World Bank

Dragana Radevic

affiliation not provided to SSRN

Date Written: February 1, 2007

Abstract

The Government of Montenegro is preparing an electricity tariff reform due to recent developments in the national and regional electricity markets. Electricity tariffs for residential consumers in Montenegro are likely to gradually increase by anywhere from 40 to over 100 percent. This significant price rise will impose a heavy burden on poor households and it may adversely affect the environment. In an ex-ante investigation of the welfare impact of this price increase on households in Montenegro, the authors show that the anticipated price increase will result in a significant increase in households' energy expenditures. A simulation of alternative policy measures analyzes the impact of different tariff levels and structures on the poor and vulnerable households in particular. Higher electricity prices could also significantly increase the proportion of households using fuelwood for space heating.

Keywords: Energy Production and Transportation, Electric Power, Environment and Energy Efficiency, Energy and Environment, Engineering

Suggested Citation

Silva, Patricia and Klytchnikova, Irina and Radevic, Dragana, Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro (February 1, 2007). World Bank Policy Research Working Paper No. 4127, Available at SSRN: https://ssrn.com/abstract=960627

Patricia Silva

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Irina Klytchnikova

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Dragana Radevic

affiliation not provided to SSRN ( email )

No Address Available

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
127
Abstract Views
1,400
Rank
414,458
PlumX Metrics