The welfare effects of unprecedented electricity price hikes in Zambia

This paper simulates the real household expenditure effects of large electricity price increases in Zambia. First, we find that electricity subsidies are highly regressive. The richest household quintile receives over 60% of the subsidies, while the poorest quintile receives less than 1%. Second, our partial equilibrium simulations of the welfare effects of a 75% electricity price increase show that the poorest households would experience a 3...