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

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Author Info
Dorothée Boccanfuso () (GREDI, Faculte d'administration, Université de Sherbrooke)
Antonio Estache () (World Bank and, the European Centre for Advanced Research in Economics and Statistics at the Free University of Brussels)
Luc Savard () (GREDI, Faculte d'administration, Université de Sherbrooke)

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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.

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File URL: http://pages.usherbrooke.ca/gredi/wpapers/GREDI-0712.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 07-12.

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Length: 27 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:shr:wpaper:07-12

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Postal: Sherbrooke, Qu�bec, J1K 2R1
Phone: (819) 821-7233
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Web page: https://qp.admnt.usherbrooke.ca/QuickPlace/gredi/Main.nsf/h_Toc/536568F95B90740A85257295005ABBC9/?OpenDocument
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Related research
Keywords: computable general equilibrium model; micro-simulation; poverty analysis; income distribution; privatization; water utilities;

Find related papers by JEL classification:
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out
L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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References listed on IDEAS
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  1. Thomas Hertel & Jeffrey Reimer, 2005. "Predicting the poverty impacts of trade reform," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 14(4), pages 377-405, December. [Downloadable!] (restricted)
    Other versions:
  2. Benitez, Daniel A. & Chisari, Omar O. & Estache, Antonio, 2001. "Can the Gains from Argentina's Utilities Reform Offset Credit Shocks?," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  3. Rob Vos & Niek De Jong, 2003. "Trade Liberalization and Poverty in Ecuador: a CGE Macro-Microsimulation Analysis," Economic Systems Research, Taylor and Francis Journals, vol. 15(2), pages 211-232, January. [Downloadable!] (restricted)
  4. John Cockburn, 2004. "Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis," Development and Comp Systems 0409012, EconWPA. [Downloadable!]
  5. Luc Savard, 2005. "Poverty and Inequality Analysis within a CGE Framework: A Comparative Analysis of the Representative Agent and Microsimulation Approaches," Development Policy Review, Overseas Development Institute, vol. 23(3), pages 313-331, 05. [Downloadable!] (restricted)
    Other versions:
  6. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers DT/2003/10, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  7. Huppi, Monika & Ravallion, Martin, 1991. "The sectoral structure of poverty during an adjustment period: Evidence for Indonesia in the mid-1980s," World Development, Elsevier, vol. 19(12), pages 1653-1678, December. [Downloadable!] (restricted)
    Other versions:
  8. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  9. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2007. "Electricity Reforms in Mali: A Macro–Micro Analysis of the Effects on Poverty and Distribution," Cahiers de recherche 07-10, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
    Other versions:
  10. Shaohua Chen & Martin Ravallion, 2004. "Welfare Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, Oxford University Press, vol. 18(1), pages 29-57.
  11. Chisari, Omar & Estache, Antonio & Romero, Carlos, 1999. "Winners and Losers from the Privatization and Regulation of Utilities: Lessons from a General Equilibrium Model of Argentina," World Bank Economic Review, Oxford University Press, vol. 13(2), pages 357-78, May.
  12. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2005. "A Poverty and Inequality Impact Assessment of Liberalization of Water Utility in Senegal: A Macro-Micro Analysis," Cahiers de recherche 05-13, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  13. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche 9909, Université Laval - Département d'économique. [Downloadable!]
    Other versions:
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