Electricity reforms in Mali: a macro-micro analysis of the effects on poverty and distribution

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Periodical article

Title:	Electricity reforms in Mali: a macro-micro analysis of the effects on poverty and distribution
Authors:	Boccanfuso, Dorothée Estache, Antonio Savard, Luc
Year:	2009
Periodical:	South African Journal of Economics
Volume:	77
Issue:	1
Pages:	127-147
Language:	English
Geographic term:	Mali
Subjects:	electricity price policy households poverty income distribution
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2009.01205.x/pdf
Abstract:	This paper uses a computable general equilibrium (CGE) micro-simulation model to explore the distributional and poverty-related effects of price reform in the electricity sector of Mali, West Africa. The first part of the paper analyses the distribution of electricity in Mali by income deciles, showing that few poor households are connected to the electricity grid. It then applies a sequential CGE micro-simulation model to track the transmission mechanisms between increases in electricity prices and changes in poverty and inequality among different household groups. The results show that direct price increases have a minimal effect on poverty and inequality, whereas the general equilibrium effects of such increases are quite strong and negative. The compensating policies that were tested do not help those who lose from the pricing reform. In fact they amplify the negative effects. Bibliogr., notes, ref., sum. [Journal abstract]