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

Author

Listed:
  • 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)

Abstract

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'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:05-13
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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0513.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Luckmann, Jonas & Grethe, Harald & McDonald, Scott & Orlov, Anton & Siddig, Khalid, 2013. "A general equilibrium approach to modelling multiple types and uses of water," Conference papers 332401, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Rashid Hassan & James Thurlow, 2011. "Macro–micro feedback links of water management in South Africa: CGE analyses of selected policy regimes," Agricultural Economics, International Association of Agricultural Economists, vol. 42(2), pages 235-247, March.
    3. 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'économique de l'École de gestion à l'Université de Sherbrooke.
    4. repec:hal:journl:dumas-00811476 is not listed on IDEAS
    5. Lee, Cassey, 2011. "Privatization, water access and affordability: Evidence from Malaysian household expenditure data," Economic Modelling, Elsevier, vol. 28(5), pages 2121-2128, September.
    6. 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.
    7. 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.

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    More about this item

    Keywords

    computable general equilibrium model; micro-simulation; poverty analysis; income distribution; privatization; water utilities;
    All these keywords.

    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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