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A Poverty and Inequality Impact Assessment of Liberalization of Water Utility in Senegal: A Macro-Micro Analysis


  • 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)


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.

Suggested Citation

  • Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2005. "A Poverty and Inequality Impact Assessment of Liberalization of Water Utility in Senegal: A Macro-Micro Analysis," Cahiers de recherche 05-13, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  • Handle: RePEc:shr:wpaper:05-13

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    References listed on IDEAS

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    6. Chia, Ngee-Choon & Wahba, Sadek & Whalley, John, 1994. "Poverty-Reducing Targeting Programmes: A General Equilibrium Approach," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 3(2), pages 309-338, October.
    7. De Maio, Lorenzo & Stewart, Frances & van der Hoeven, Rolph, 1999. "Computable General Equilibrium Models, Adjustment and the Poor in Africa," World Development, Elsevier, vol. 27(3), pages 453-470, March.
    8. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "Poverty effects of Russia's WTO accession : modeling"real"households and endogenous productivity effects," Policy Research Working Paper Series 3473, The World Bank.
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    13. Thomas W. Hertel & Jeffrey J. Reimer, 2006. "Predicting the Poverty Impacts of Trade Reform," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.
    14. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche 9909, Université Laval - Département d'économique.
    15. Jean-Marc Montaud, 2000. "Dotations en capital et pauvreté des ménages au Burkina Faso : une analyse en équilibre général calculable," Documents de travail 50, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
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    Cited by:

    1. repec:hal:journl:dumas-00811476 is not listed on IDEAS
    2. Kayaga, Sam & Franceys, Richard, 2007. "Costs of urban utility water connections: Excessive burden to the poor," Utilities Policy, Elsevier, vol. 15(4), pages 270-277, December.
    3. Marcela Meléndez & Andrés Gómez-Lobo Echeñique, 2007. "Social Policy, Regulation and Private Sector water supply: the case of Colombia," Working Papers wp252, University of Chile, Department of Economics.
    4. 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'Economique de l'École de gestion à l'Université de Sherbrooke.

    More about this item


    computable general equilibrium model; micro-simulation; poverty analysis; income distribution; privatization; water utilities;

    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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