Residential Electricity Subsidies in
            Mexico : Exploring Options for Reform and for Enhancing the
            Impact on the Poor

Komives, Kristin; Johnson, Todd M.; Halpern, Jonathan D.; Aburto, Jose Luis; Scott, John R.

Residential Electricity Subsidies in Mexico : Exploring Options for Reform and for Enhancing the Impact on the Poor

Autores

Editor

World Bank

Descripción

This report addresses a pressing issue in Mexico's electricity sector the large and growing subsidies to residential consumers and their regressive incidence across different segments of the population. It responds to requests from the Ministry of Energy to provide a preliminary assessment of alternatives to the current subsidy system, building on prior collaboration between the Government of Mexico and the World Bank on the distributional impact of public spending, the performance of conditional cash transfer programs and other poverty-targeted programs, and related work on pricing and subsidies for infrastructure services. This study was designed as the first phase of a multiphase program of collaborative analytical work. This first phase provides estimates of the distributional and fiscal performance of alternative subsidy targeting mechanisms to help inform discussion and deliberations on feasible goals and practical approaches over the medium term. A second phase will address transition paths, specific compensatory mechanisms, and decision processes for pursuing the options that the Mexican authorities deem most promising.

Palabras clave

ACCESS TO ELECTRICITY, ACCOUNTING, AGRICULTURE, AIR QUALITY, APPROACH, AVERAGE COSTS, BENCHMARKING, BENEFICIARIES, CALCULATION, CALCULATIONS, CASH SUBSIDY, CASH TRANSFER, CLIMATE CHANGE, CONNECTED HOUSEHOLDS, CONSUMER, CONSUMER BEHAVIOR, CONSUMER GROUPS, CONSUMPTION LEVELS, CONTRIBUTION, CONTRIBUTIONS, COST ESTIMATE, COST OF ELECTRICITY, COST RECOVERY, CURRENCY, DEMAND ELASTICITY, DEMAND FOR ELECTRICITY, DEPRECIATION, DIESEL, DISPOSABLE INCOMES, DISTRIBUTION LOSSES, DISTRIBUTION OF COSTS, DISTRIBUTION OF ELECTRICITY, DIVIDENDS, ECONOMIC COMPETITIVENESS, ECONOMIC COST, ECONOMIC EFFICIENCY, ECONOMIC PROGRAMS, EFFICIENCY IMPROVEMENTS, ELECTRIC UTILITIES, ELECTRICITY, ELECTRICITY CONSUMPTION, ELECTRICITY DEMAND, ELECTRICITY PRICES, ELECTRICITY SALES, ELECTRICITY SUPPLY, ELECTRICITY TARIFF, ELECTRICITY TARIFFS, ELECTRICITY UTILITIES, ELECTRICITY UTILITY, EMISSIONS, EMISSIONS FROM POWER PLANTS, EMPLOYMENT, ENERGY CONSUMPTION, EXCHANGE RATE, EXCHANGE RATES, EXCLUSION, FINANCES, FINANCIAL COST, FINANCIAL HEALTH, FINANCIAL SITUATION, FINANCIAL SUBSIDIES, FINANCIAL SUSTAINABILITY, FISCAL PERFORMANCE, FUEL, FUEL COSTS, FUEL OIL, FUELS, GDP, GENERATING CAPACITY, GENERATION, GOVERNMENT EXPENDITURES, GREENHOUSE GAS, GREENHOUSE GAS EMISSIONS, GROSS DOMESTIC PRODUCT, HIGH GAS PRICES, HOUSEHOLD EXPENDITURE, HOUSEHOLD EXPENDITURES, HOUSEHOLD INCOME, INCOME, INCOME GROUPS, INCOME LEVEL, INCOME LEVELS, INEFFICIENCY, INFERIOR GOODS, INFLATION, INVESTMENT PROGRAM, JUDGMENT, KILOWATT-HOUR, LIVING STANDARDS, LOW-INCOME, LOW-INCOME CONSUMERS, LOWER INCOME, LOWER-INCOME POPULATION, MARGINAL COST, MARGINAL COST OF ELECTRICITY, MARGINAL COSTS, MERIT GOOD, NATURAL GAS, OIL, PARTICULATES, PEAK DEMAND, PENSIONS, POLLUTANTS, POSITIVE EXTERNALITIES, POWER, POWER PRODUCER, POWER SYSTEM, PRICE ELASTICITY, PRICE ELASTICITY OF DEMAND, PRICE OF ELECTRICITY, PRIMARY EDUCATION, PUBLIC EXPENDITURE, PURCHASES, PURCHASING POWER, RESIDENTIAL CONSUMERS, RETIREMENT, SAFETY NET, SOCIAL FUND, SOCIAL FUNDS, SOCIOECONOMIC IMPACT, SOURCE OF INFORMATION, SUPPLY COSTS, SUPPLY EFFICIENCY, TARGETED SUBSIDIES, TARIFF LEVELS, TARIFF STRUCTURE, TARIFF STRUCTURES, TARIFF SYSTEM, TARIFF SYSTEMS, TAX, TAX REBATES, TEMPORARY EMPLOYMENT, TOTAL COST, TOTAL COSTS, TRANSMISSION FACILITIES, TRANSMISSION LOSSES, UTILITY CHARGES, VARIABLE COST, WAGE, WAGES, WEB PAGE, WORTH