A Poverty and Inequality Impact Assessment of Liberalization of Water Utility in Senegal: A Macro-Micro Analysis
Many argued that water accessibility to the poor has been improved with the privatization of water utilities and that privatization on the whole has been beneficial to the poor households. In this paper, we used a multi-household integrated CGE model to analyze the impact of the privatization of the water utilities in Senegal on poverty and inequality and we also present a distributional analysis of water distribution before and after privatization to verify is the privatization process has been pro-poor. We simulate OPEX and CAPEX strategies and analyze how they affect government finances and other key macro and sectoral variables and attempt to measure the impact on poverty and inequality of different groups of households. The simulated price increases for the utility sector, have marginal effects on government finances and positive effects on most groups and negative effects on others agents.
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