Replication data for: Infrastructure Quality and the Subsidy Trap

Principal Investigator(s):  View help for Principal Investigator(s) Shaun McRae

Version:  View help for Version V1

Name File Type Size Last Modified
  20110572_data 10/11/2019 11:17:PM
LICENSE.txt text/plain 14.6 KB 10/11/2019 07:17:PM

Project Description

Summary:  View help for Summary Electricity and water are often subsidized in developing countries to increase their affordability for low-income households. Ideally, such subsidies would create sufficient demand in poor neighborhoods to encourage private investment in their infrastructure. Instead, many regions receiving large subsidies have precarious distribution networks supplying users who never pay. Using a structural model of household electricity demand in Colombia, I predict the change in consumption and profits from upgrading low-quality electricity connections. I show that the existing subsidies, which provide greater transfers to areas with unreliable supply, deter investment to modernize infrastructure. Finally, I analyze alternative programs with stronger investment incentives. (JEL H23, H54, L94, L98, O12, O13)

Scope of Project

Subject Terms:  View help for Subject Terms Demand Estimation
JEL Classification:  View help for JEL Classification
      H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
      H54 National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
      L94 Electric Utilities
      L98 Industry Studies: Utilities and Transportation: Government Policy
      O12 Microeconomic Analyses of Economic Development
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Geographic Coverage:  View help for Geographic Coverage Colombia
Universe:  View help for Universe Households in Colombia with an electricity connection
Data Type(s):  View help for Data Type(s) [survey data, administrative records data]

Methodology

Data Source:  View help for Data Source Superintendencia de Servicios Publicos Domiciliarios
Unit(s) of Observation:  View help for Unit(s) of Observation Households,

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Published Versions

V1 [2019-10-11]

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DDI 2.5

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