IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v179y2023ics0301421523002331.html
   My bibliography  Save this article

Barriers to the adoption of social welfare measures in the electricity tariff structure of developing countries: A case of Pakistan

Author

Listed:
  • Jan, Muhammad Zain
  • Ullah, Kafait
  • Abbas, Faisal
  • Khalid, Hassan Abdullah
  • Bajwa, Tariq M.

Abstract

Energy tariff plays an important role in ensuring affordable energy availability in a country. Various developed countries have incorporated social welfare indicators in their electricity tariff structures to support their lower-income groups. The developing countries, riddled with multifaceted challenges in their energy value chains have not taken care of access to affordable energy for the poor (SDG7). Existing literature on developing countries and Pakistan has not sufficiently highlighted the drivers of social welfare mechanisms in the electricity tariff structure for poor households. This study aims at examining the factors contributing to the decline in social welfare for electricity household consumers in Pakistan. The study has utilized a mixed analytical approach, incorporating NVIVO analysis and Q methodology. The results highlighted a lack of regulatory performance, political influence, suboptimal governance, and financial constraints as barriers to enhancing the residential consumer's social welfare in Pakistan. Our findings may help to devise and revise the policies such as power sector subsidies for the determination of better electricity tariffs for the poorer segment of society in Pakistan. Other developing countries may also benefit by improving the relevant policy circumstances (main barriers from this study) of the electricity subsidies for poor households.

Suggested Citation

  • Jan, Muhammad Zain & Ullah, Kafait & Abbas, Faisal & Khalid, Hassan Abdullah & Bajwa, Tariq M., 2023. "Barriers to the adoption of social welfare measures in the electricity tariff structure of developing countries: A case of Pakistan," Energy Policy, Elsevier, vol. 179(C).
    • Handle: RePEc:eee:enepol:v:179:y:2023:i:c:s0301421523002331
    DOI: 10.1016/j.enpol.2023.113648
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421523002331
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2023.113648?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Haroon S. Awan & Ghulam Samad & Naseem Faraz, 2019. "Electricity Subsidies and Welfare Analysis: The Perspective of Pakistan," PIDE-Working Papers 2019:164, Pakistan Institute of Development Economics.
    2. Jia, Zhijie & Lin, Boqiang, 2021. "The impact of removing cross subsidies in electric power industry in China: Welfare, economy, and CO2 emission," Energy Policy, Elsevier, vol. 148(PB).
    3. Ullah, Kafait & Arentsen, Maarten J. & Lovett, Jon C., 2017. "Institutional determinants of power sector reform in Pakistan," Energy Policy, Elsevier, vol. 102(C), pages 332-339.
    4. Sharma, Sangeeta V. & Han, Phoumin & Sharma, Vinod K., 2019. "Socio-economic determinants of energy poverty amongst Indian households: A case study of Mumbai," Energy Policy, Elsevier, vol. 132(C), pages 1184-1190.
    5. Dang, Duc Anh & La, Hai Anh, 2019. "Does electricity reliability matter? Evidence from rural Viet Nam," Energy Policy, Elsevier, vol. 131(C), pages 399-409.
    6. Tu Chi Nguyen & Anshul Rana & Erik Magnus Fernstrom & Vivien Foster, 2020. "Rethinking Power Sector Reform," World Bank Publications - Reports 33689, The World Bank Group.
    7. Jamil, Muhammad Hamza & Ullah, Kafait & Saleem, Noor & Abbas, Faisal & Khalid, Hassan Abdullah, 2022. "Did the restructuring of the electricity generation sector increase social welfare in Pakistan?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    8. Khalid, Syed Adnan & Salman, Verda, 2020. "“Welfare impact of electricity subsidy reforms in Pakistan: A micro model study”," Energy Policy, Elsevier, vol. 137(C).
    9. Malik, Sadia & Qasim, Maha & Saeed, Hasan & Chang, Youngho & Taghizadeh-Hesary, Farhad, 2020. "Energy security in Pakistan: Perspectives and policy implications from a quantitative analysis," Energy Policy, Elsevier, vol. 144(C).
    10. Rao Qasim Idrees & Rohimi Shapiee & Haniff Ahamat, 2019. "The Role of Logistics Infrastructure in China Pakistan Economic Corridor Energy Generation Development," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 262-268.
    11. Farrell, Lisa & Fry, Jane M., 2021. "Australia's gambling epidemic and energy poverty," Energy Economics, Elsevier, vol. 97(C).
    12. Ullah, Kafait & Raza, Muhammad Shabbar & Mirza, Faisal Mehmood, 2019. "Barriers to hydro-power resource utilization in Pakistan: A mixed approach," Energy Policy, Elsevier, vol. 132(C), pages 723-735.
    13. Wang, Yao & Lin, Boqiang, 2021. "Performance of alternative electricity prices on residential welfare in China," Energy Policy, Elsevier, vol. 153(C).
    14. Tovar Reaños, Miguel A. & Wölfing, Nikolas M., 2018. "Household energy prices and inequality: Evidence from German microdata based on the EASI demand system," Energy Economics, Elsevier, vol. 70(C), pages 84-97.
    15. Chris Trimble & Nobuo Yoshida & Mohammad Saqib, 2011. "Rethinking Electricity Tariffs and Subsidies in Pakistan," World Bank Publications - Reports 19456, The World Bank Group.
    16. Mpholo, Moeketsi & Mothala, Matsoso & Mohasoa, Lebohang & Eager, Dan & Thamae, Retselisitsoe & Molapo, Tsita & Jardine, Tom, 2020. "Determination of the lifeline electricity tariff for Lesotho," Energy Policy, Elsevier, vol. 140(C).
    17. Barry, John & Proops, John, 1999. "Seeking sustainability discourses with Q methodology," Ecological Economics, Elsevier, vol. 28(3), pages 337-345, March.
    18. Lehtonen, Olli & Okkonen, Lasse, 2019. "Energy cost reduction creates additional socioeconomic benefits– The case of Eno Energy Cooperative, Finland," Energy Policy, Elsevier, vol. 129(C), pages 352-359.
    19. Brown, Toby & Faruqui, Ahmad & Grausz, Léa, 2015. "Efficient tariff structures for distribution network services," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 139-149.
    20. Sachs,Jeffrey & Kroll,Christian & Lafortune,Guillame & Fuller,Grayson & Woelm,Finn, 2021. "Sustainable Development Report 2021," Cambridge Books, Cambridge University Press, number 9781009098915.
    21. Pacudan, Romeo & Hamdan, Mahani, 2019. "Electricity tariff reforms, welfare impacts, and energy poverty implications," Energy Policy, Elsevier, vol. 132(C), pages 332-343.
    22. Vivien Foster & Anshul Rana, 2020. "Rethinking Power Sector Reform in the Developing World [Repenser la réforme du secteur de l’électricité dans les pays en développement]," World Bank Publications - Books, The World Bank Group, number 32335, December.
    23. Nauman Ahmed & Uzma Nisar, 2019. "Electricity Demand in Pakistan: A Household Analysis," Journal of Economic Impact, Science Impact Publishers, vol. 1(2), pages 34-39.
    24. Valasai, Gordhan Das & Uqaili, Muhammad Aslam & Memon, HafeezUr Rahman & Samoo, Saleem Raza & Mirjat, Nayyar Hussain & Harijan, Khanji, 2017. "Overcoming electricity crisis in Pakistan: A review of sustainable electricity options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 734-745.
    25. Matinga, Margaret N. & Pinedo-Pascua, Irene & Vervaeke, Jonathan & Monforti-Ferrario, Fabio & Szabó, Sándor, 2014. "Do African and European energy stakeholders agree on key energy drivers in Africa? Using Q methodology to understand perceptions on energy access debates," Energy Policy, Elsevier, vol. 69(C), pages 154-164.
    26. Jabeen, Gul & Yan, Qingyou & Ahmad, Munir & Fatima, Nousheen & Jabeen, Maria & Li, Heng & Qamar, Shoaib, 2020. "Household-based critical influence factors of biogas generation technology utilization: A case of Punjab province of Pakistan," Renewable Energy, Elsevier, vol. 154(C), pages 650-660.
    27. Ali, Muhammad Rizwan & Shafiq, Muhammad, 2021. "Revealing expert perspectives on challenges to electricity Demand-Side Management in Pakistan: An application of Q-Methodology," Utilities Policy, Elsevier, vol. 70(C).
    28. Yasar, Abdullah & Nazir, Saba & Tabinda, Amtul Bari & Nazar, Masooma & Rasheed, Rizwan & Afzaal, Muhammad, 2017. "Socio-economic, health and agriculture benefits of rural household biogas plants in energy scarce developing countries: A case study from Pakistan," Renewable Energy, Elsevier, vol. 108(C), pages 19-25.
    29. Al-Bajjali, Saif Kayed & Shamayleh, Adel Yacoub, 2018. "Estimating the determinants of electricity consumption in Jordan," Energy, Elsevier, vol. 147(C), pages 1311-1320.
    30. Piai Paiva, Juliani Chico & Jannuzzi, Gilberto De Martino & de Melo, Conrado Augustus, 2019. "Mapping electricity affordability in Brazil," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.
    31. Pereira Uhr, Daniel de Abreu & Squarize Chagas, André Luis & Ziero Uhr, Júlia Gallego, 2019. "Estimation of elasticities for electricity demand in Brazilian households and policy implications," Energy Policy, Elsevier, vol. 129(C), pages 69-79.
    32. Qazi, Usama & Jahanzaib, Mirza & Ahmad, Wasim & Hussain, Salman, 2017. "An institutional framework for the development of sustainable and competitive power market in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 83-95.
    33. Tiep, Nguyen Cong & Wang, Mengqi & Mohsin, Muhammad & Kamran, Hafiz Waqas & Yazdi, Farzaneh Ahmadian, 2021. "An assessment of power sector reforms and utility performance to strengthen consumer self-confidence towards private investment," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 676-689.
    34. Guerrini, Andrea & Romano, Giulia, 2013. "The process of tariff setting in an unstable legal framework: An Italian case study," Utilities Policy, Elsevier, vol. 24(C), pages 78-85.
    35. Sachs,Jeffrey & Kroll,Christian & Lafortune,Guillame & Fuller,Grayson & Woelm,Finn, 2021. "Sustainable Development Report 2021," Cambridge Books, Cambridge University Press, number 9781009102896, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jamil, Muhammad Hamza & Ullah, Kafait & Saleem, Noor & Abbas, Faisal & Khalid, Hassan Abdullah, 2022. "Did the restructuring of the electricity generation sector increase social welfare in Pakistan?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    2. Ullah, Kafait & Raza, Muhammad Shabbar & Mirza, Faisal Mehmood, 2019. "Barriers to hydro-power resource utilization in Pakistan: A mixed approach," Energy Policy, Elsevier, vol. 132(C), pages 723-735.
    3. Fahad Bin Abdullah & Rizwan Iqbal & Falak Shad Memon & Sadique Ahmad & Mohammed A. El-Affendi, 2023. "Advancing Sustainability in the Power Distribution Industry: An Integrated Framework Analysis," Sustainability, MDPI, vol. 15(10), pages 1-28, May.
    4. Ilyas, Rubina & Hussain, Khadim & Ullah, Mehreen Zaid & Xue, Jianhong, 2022. "Distributional impact of phasing out residential electricity subsidies on household welfare," Energy Policy, Elsevier, vol. 163(C).
    5. Abdullah, Fahad Bin & Iqbal, Rizwan & Hyder, Syed Irfan & Jawaid, Mohammad, 2020. "Energy security indicators for Pakistan: An integrated approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    6. Ashfaq, Asad & Ianakiev, Anton, 2018. "Features of fully integrated renewable energy atlas for Pakistan; wind, solar and cooling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 14-27.
    7. Wang, Xiaolei & Wei, Chunxin & Wang, Yanhua, 2022. "Does the current tiered electricity pricing structure still restrain electricity consumption in China's residential sector?," Energy Policy, Elsevier, vol. 165(C).
    8. Bezerra, Paula & Cruz, Talita & Mazzone, Antonella & Lucena, André F.P. & De Cian, Enrica & Schaeffer, Roberto, 2022. "The multidimensionality of energy poverty in Brazil: A historical analysis," Energy Policy, Elsevier, vol. 171(C).
    9. Chi Zhang & Zhongchang Sun & Qiang Xing & Jialong Sun & Tianyu Xia & Hao Yu, 2021. "Localizing Indicators of SDG11 for an Integrated Assessment of Urban Sustainability—A Case Study of Hainan Province," Sustainability, MDPI, vol. 13(19), pages 1-14, October.
    10. Xu, Deyi & Sheraz, Muhammad & Hassan, Arshad & Sinha, Avik & Ullah, Saif, 2022. "Financial development, renewable energy and CO2 emission in G7 countries: New evidence from non-linear and asymmetric analysis," Energy Economics, Elsevier, vol. 109(C).
    11. Sulman Shahzad & Muhammad Abbas Abbasi & Hassan Ali & Muhammad Iqbal & Rania Munir & Heybet Kilic, 2023. "Possibilities, Challenges, and Future Opportunities of Microgrids: A Review," Sustainability, MDPI, vol. 15(8), pages 1-28, April.
    12. Andr'es Ram'irez-Hassan & Alejandro L'opez-Vera, 2021. "Semi-parametric estimation of the EASI model: Welfare implications of taxes identifying clusters due to unobserved preference heterogeneity," Papers 2109.07646, arXiv.org.
    13. Hametner, Markus, 2022. "Economics without ecology: How the SDGs fail to align socioeconomic development with environmental sustainability," Ecological Economics, Elsevier, vol. 199(C).
    14. Ofori, Isaac K. & Figari, Francesco, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Forthcomi, pages 1-1.
    15. Bianca Carducci & Yaqub Wasan & Agha Shakeel & Amjad Hussain & Jo-Anna B. Baxter & Arjumand Rizvi & Sajid B. Soofi & Zulfiqar A. Bhutta, 2022. "Characterizing Retail Food Environments in Peri-Urban Pakistan during the COVID-19 Pandemic," IJERPH, MDPI, vol. 19(14), pages 1-13, July.
    16. Daniela Cristina Momete & Manuel Mihail Momete, 2021. "Map and Track the Performance in Education for Sustainable Development across the European Union," Sustainability, MDPI, vol. 13(23), pages 1-14, November.
    17. Guillaume Lafortune & Grayson Fuller & Leslie Bermont Diaz & Adolf Kloke-Lesch & Phoebe Koundouri & Angelo Riccaboni, 2022. "Achieving the SDGs: Europe's Compass in a Multipolar World: Europe Sustainable Development Report 2022," DEOS Working Papers 2235, Athens University of Economics and Business.
    18. Kevin Handtke & Lisa Richter-Beuschel & Susanne Bögeholz, 2022. "Self-Efficacy Beliefs of Teaching ESD: A Theory-Driven Instrument and the Effectiveness of ESD in German Teacher Education," Sustainability, MDPI, vol. 14(11), pages 1-32, May.
    19. Carmen García-Peña & Moneyba González-Medina & Jose Manuel Diaz-Sarachaga, 2021. "Assessment of the Governance Dimension in the Frame of the 2030 Agenda: Evidence from 100 Spanish Cities," Sustainability, MDPI, vol. 13(10), pages 1-21, May.
    20. Mariusz Czupich & Justyna Łapińska & Vojtěch Bartoš, 2022. "Environmental Sustainability Assessment of the European Union’s Capital Cities," IJERPH, MDPI, vol. 19(7), pages 1-18, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:179:y:2023:i:c:s0301421523002331. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.