Electricity Reforms in Senegal: A Macro–Micro Analysis of the Effects on Poverty and Distribution

Dorothee Boccanfuso, Antonio Estache and Luc Savard

Cahiers de recherche from Departement d'économique de l'École de gestion à l'Université de Sherbrooke

Abstract: This paper uses a computable general equilibrium (CGE) macro-micro model to explore the distributional effects of price reform in the electricity sector of Senegal. In the first part of the paper we analyze the distribution of electricity in Senegal by income quintiles, between 1995 and 2001. The analysis demonstrates that poor and rural households are not the main beneficiaries of the expanded network. The results of the CGE application show that direct price increases have a minimal effect on poverty and inequality, whereas the general equilibrium effects are stronger and negative. Moreover, compensatory policies tested can help attenuate some negative effects.

Keywords: computable general equilibrium model; micro-simulation; poverty analysis; income distribution; privatization; water utilities (search for similar items in EconPapers)
JEL-codes: D31 D58 I32 L33 L93 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2007
New Economics Papers: this item is included in nep-afr, nep-cmp and nep-ene
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http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0712.pdf First version, 2007 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:shr:wpaper:07-12

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