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Provision of Public Services and Welfare of the Poor: Learning from an Incomplete Electricity Privatization Process in Rural Peru

Author

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  • Alcázar, Lorena
  • Nakasone, Eduardo
  • Torero, Máximo

Abstract

The incomplete privatization of the electric sector in Peru provides a unique scenario for evaluating the impact of public versus private provision. The results in this paper suggest that management of electricity firms by the private sector leads to a significant improvement in the quality of the provision of electricity. These improvements in quality and supply of electricity provision yield some efficiency gains in terms of the time allocation of the working labor force that can be directly linked to the use of electricity. Rural households under private provision of electricity had more opportunities to work in non-farm activities, and as a result, the share of time in non-farm activities increased, indicating both a substitution effect and a potential price effect through higher non-farm wages.

Suggested Citation

  • Alcázar, Lorena & Nakasone, Eduardo & Torero, Máximo, 2007. "Provision of Public Services and Welfare of the Poor: Learning from an Incomplete Electricity Privatization Process in Rural Peru," IDB Publications (Working Papers) 3351, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:3351
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    2. Patrick Mabuza, 2019. "Is the Public Private Partnership Model the Right Vehicle for Public Infrastructure Delivery in Developing Countries?," Journal of Economics and Behavioral Studies, AMH International, vol. 11(1), pages 211-222.
    3. Berkman, Heather & Pagés, Carmen & Gandelman, Néstor & Gandelman, Eduardo & Calónico, Sebastián & Azevedo, Viviane & Payne, J. Mark & Cárdenas, Juan Camilo & Duryea, Suzanne & Chaparro, Juan Camilo & , 2008. "Outsiders?: The Changing Patterns of Exclusion in Latin America and the Caribbean. Economic and Social Progress in Latin America. 2008 Report," IDB Publications (Books), Inter-American Development Bank, number 405, March.
    4. Heather Berkman & Carmen Pagés & Néstor Gandelman & Eduardo Gandelman & Sebastián Calónico & Viviane Azevedo & J. Mark Payne & Juan Camilo Cárdenas & Suzanne Duryea & Juan Camilo Chaparro & Eduardo Lo, 2008. "Outsiders?: The Changing Patterns of Exclusion in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 79268 edited by Suzanne Duryea & Alberto E. Chong & Jacqueline Mazza & Gustavo Márquez & Hugo R. Ñopo, February.
    5. Jacopo Bonan & Stefano Pareglio & Massimo Tavoni, 2014. "Access to Modern Energy: a Review of Impact Evaluations," Working Papers 2014.96, Fondazione Eni Enrico Mattei.

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