Lebanon - Social impact analysis : electricity and water sectors
Knack, Stephen | Eubank, Nicholas
The purpose of this Social Impact Analysis (SIA) is to probe the social, poverty, and equity dimensions of electricity and water sector reforms' and provide meaningful analysis to policy makers based on recently collected data. With a focus on households, the end users of utility services, the study complements the recent and ongoing studies on the Lebanon water and energy sectors that deal with more technical and supply side issues. The study assesses how poor and vulnerable households are affected by the current utility service situation and how they may be affected by reform proposals under deliberation. The aim is to provide policy makers with a deeper understanding of the social dimensions of water and electricity consumption as well as tools for estimating the distributional impacts of reform measures. This study followed the Poverty and Social Impact Analysis (PSIA) approach, an increasingly common approach, used both within and outside the World Bank to evaluate the distributional impacts of policy reforms. Chapter two provides a review of household electricity supply and demand, private generation, tariffs, expenditures, and willingness to pay. It is followed by a discussion of the distributional impact of the tariff structure, including simulations of tariff scenarios for illustrative purposes. Chapter three reviews the water sector, public water supply, household connections, water quality issues, alternate water sources, tariffs, expenditures, and willingness to pay. Both chapters conclude with recommendations with an emphasis on social implications of key reforms that matters for households. Annexes cover methodology and a description of the private generator business in Lebanon.
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