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ID:
132576
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2014.
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| Summary/Abstract |
Electricity prices in Brunei are highly subsidized, placing a heavy fiscal burden on the government budget. Prior to 1 January 2012, the primary electricity tariff in the residential sector was based on a Declining Block Tariff structure, and non-poor households enjoyed a disproportionately large share of total electricity subsidies. The government has since implemented a new electricity tariff in the residential sector based on an Increasing Block Tariff. The main objective of this paper is to evaluate the welfare impact for households. It is estimated that about 80 per cent of households benefit from the new tariff, with poor households enjoying a larger percentage gain compared to the old tariff. However, total electricity subsidies remain roughly unchanged under the new tariff; in addition, non-poor households continue to enjoy a substantial proportion of the subsidies. There is still much to be done to tackle the high fiscal costs of subsidies and the problem of distribution distortion.
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| 2 |
ID:
132577
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| Publication |
2014.
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| Summary/Abstract |
Total Factor Productivity - TFP
Water Sector - Malaysia
Data Envelopment Analysis - DEA
Technological Improvements
Optimal Performance
Capital Investment
Social Reforms
Social Welfares
Economic Policy
Malaysia
Resource Utilization
Tariff Rates
Economic Liberalization
This paper analyses efficiency within the Malaysian water sector using the Data Envelopment Analysis (DEA) approach and the Malmquist Total Factor Productivity (TFP) Index. The results of the DEA show that the sector's mean technical efficiency was about 65 per cent over a ten-year period (1999 to 2008), which means that there is significant room for improvement in the area of resource utilization, whereby the sector can expand by 35 per cent whilst continuing to use the same amount of resources. The findings also indicate that Pulau Pinang state has the most efficient utilization of water and can therefore serve as a benchmark for optimal performance. The TFP analysis shows that the sector lags behind in the area of technological improvements, confirming an ongoing problem of inadequate capital investment. The findings indicate a positive relationship between efficiency and profitability and a negative relationship between efficiency and tariff rates. The relationship between privatization and efficiency, however, cannot be ascertained solely from the findings of this paper.
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