Electricity Reforms in Mali: 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) microsimulation model to explore the distributional and poverty-related effects of price reform in the electricity sector of Mali, a poor country in West Africa. In the first part of the paper we analyze the distribution of electricity in Mali by income deciles, showing that few poor households are connected to the electricity grid. We then apply a sequential CGE microsimulation model to track the transmission mechanisms between increases in electricity prices and changes in poverty and inequality among different household groups. Our results show that direct price increases have a minimal effect on poverty and inequality, whereas the general equilibrium effects of such increases are quite strong and negative. The compensating policies we tested do not help those who lose from the pricing reform. In fact they amplify the 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: 23 pages
Date: 2007
New Economics Papers: this item is included in nep-afr, nep-cmp and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0710.pdf First version, 2007 (application/pdf)

Related works:
Journal Article: ELECTRICITY REFORMS IN MALI: A MACRO–MICRO ANALYSIS OF THE EFFECTS ON POVERTY AND DISTRIBUTION (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:shr:wpaper:07-10

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