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Utility payments in Ukraine: affordability, subsidies and arrears

Listed author(s):
  • Samuel Fankhauser

    (UCL School of Slavonic and East European Studies)

  • Yulia Rodionova

    ()

    (EBRD)

  • Elisabetta Falcetti

    (EBRD)

Registered author(s):

    Transition has led to a significant increase in the severity and incidence of poverty in Eastern Europe. One important aspect of poverty is access to, and the affordability of, basic services like electricity, heat and water. This paper provides evidence on this issue from the Ukraine Longitudinal Monitoring Survey (ULMS). The paper identifies considerable differences in both access and affordability between different localities in Ukraine. Social protection measures can help to alleviate affordability constraints, but the analysis finds that social support is not well targeted. The currently low tariffs prevent an escalation of affordability problems but constraints nevertheless exist. Many households have accumulated substantial arrears as a consequence, although non-payment is a complex issue and not solely a function of affordability.

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    File URL: http://discovery.ucl.ac.uk/17458/1/17458.pdf
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    Paper provided by UCL School of Slavonic and East European Studies (SSEES) in its series UCL SSEES Economics and Business working paper series with number 87.

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    Length: 50 pages
    Date of creation: Feb 2008
    Handle: RePEc:see:wpaper:87
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    1. Julian A. Lampietti & Anke S. Meyer, 2002. "Coping with the Cold : Heating Strategies for Eastern Europe and Central Asia's Urban Poor," World Bank Publications, The World Bank, number 15174, September.
    2. World Bank, 2005. "Ukraine : Poverty Assessment, Poverty and Inequality in a Growing Economy," World Bank Other Operational Studies 8803, The World Bank.
    3. Julian A. Lampietti & Anthony A. Kolb & Sumila Gulyani & Vahram Avenesyan, 2001. "Utility Pricing and the Poor : Lessons from Armenia," World Bank Publications, The World Bank, number 13913, September.
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