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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2007. "Electricity Reforms in Senegal: A Macro–Micro Analysis of the Effects on Poverty and Distribution," Cahiers de recherche 07-12, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:07-12
    as

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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0712.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    computable general equilibrium model; micro-simulation; poverty analysis; income distribution; privatization; water utilities;
    All these keywords.

    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, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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