Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro
The Government of Montenegro is preparing an electricity tariff reform due to recent developments in the national and regional electricity markets. Electricity tariffs for residential consumers in Montenegro are likely to gradually increase by anyw...
| Main Authors: | , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/02/7354543/poverty-environmental-impacts-electricity-price-reforms-montenegro http://hdl.handle.net/10986/7131 |
| Summary: | The Government of Montenegro is
preparing an electricity tariff reform due to recent
developments in the national and regional electricity
markets. Electricity tariffs for residential consumers in
Montenegro are likely to gradually increase by anywhere from
40 to over 100 percent. This significant price rise will
impose a heavy burden on poor households and it may
adversely affect the environment. In an ex-ante
investigation of the welfare impact of this price increase
on households in Montenegro, the authors show that the
anticipated price increase will result in a significant
increase in households' energy expenditures. A
simulation of alternative policy measures analyzes the
impact of different tariff levels and structures on the poor
and vulnerable households in particular. Higher electricity
prices could also significantly increase the proportion of
households using fuelwood for space heating. |
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