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Utility payments in Ukraine: affordability, subsidies and arrears

Author

Listed:
  • Samuel Fankhauser

    (UCL School of Slavonic and East European Studies)

  • Yulia Rodionova

    (EBRD)

  • Elisabetta Falcetti

    (EBRD)

Abstract

Transition has led to a significant increase in the severity and incidence of poverty in Eastern Europe. One important aspect of poverty is access to, and the affordability of, basic services like electricity, heat and water. This paper provides evidence on this issue from the Ukraine Longitudinal Monitoring Survey (ULMS). The paper identifies considerable differences in both access and affordability between different localities in Ukraine. Social protection measures can help to alleviate affordability constraints, but the analysis finds that social support is not well targeted. The currently low tariffs prevent an escalation of affordability problems but constraints nevertheless exist. Many households have accumulated substantial arrears as a consequence, although non-payment is a complex issue and not solely a function of affordability.

Suggested Citation

  • Samuel Fankhauser & Yulia Rodionova & Elisabetta Falcetti, 2008. "Utility payments in Ukraine: affordability, subsidies and arrears," UCL SSEES Economics and Business working paper series 87, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:87
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    File URL: http://discovery.ucl.ac.uk/17458/1/17458.pdf
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    References listed on IDEAS

    as
    1. Julian A. Lampietti & Anke S. Meyer, 2002. "Coping with the Cold : Heating Strategies for Eastern Europe and Central Asia's Urban Poor," World Bank Publications - Books, The World Bank Group, number 15174.
    2. World Bank, 2005. "Ukraine : Poverty Assessment, Poverty and Inequality in a Growing Economy," World Bank Publications - Reports 8803, The World Bank Group.
    3. Dodonov, Boris & Opitz, Petra & Pfaffenberger, Wolfgang, 2004. "How much do electricity tariff increases in Ukraine hurt the poor?," Energy Policy, Elsevier, vol. 32(7), pages 855-863, May.
    4. Julian A. Lampietti & Anthony A. Kolb & Sumila Gulyani & Vahram Avenesyan, 2001. "Utility Pricing and the Poor : Lessons from Armenia," World Bank Publications - Books, The World Bank Group, number 13913.
    5. Fankhauser, Samuel & Tepic, Sladjana, 2007. "Can poor consumers pay for energy and water? An affordability analysis for transition countries," Energy Policy, Elsevier, vol. 35(2), pages 1038-1049, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Alberini, Anna & Khymych, Olha & Ščasný, Milan, 2020. "Responsiveness to energy price changes when salience is high: Residential natural gas demand in Ukraine," Energy Policy, Elsevier, vol. 144(C).
    2. Martins, Rita & Quintal, Carlota & Antunes, Micaela, 2019. "Making ends meet: Actual versus potential joint affordability of utility services," Utilities Policy, Elsevier, vol. 56(C), pages 120-126.
    3. Martins, Rita & Quintal, Carlota & Cruz, Luís & Barata, Eduardo, 2016. "Water affordability issues in developed countries – The relevance of micro approaches," Utilities Policy, Elsevier, vol. 43(PA), pages 117-123.
    4. Teotónio, C. & Martins, R. & Antunes, M. & Quintal, C., 2023. "Unveiling underconsumption of water and electricity services at the bottom of the income distribution," Utilities Policy, Elsevier, vol. 82(C).
    5. Raslavicius, Laurencas & Grzybek, Anna & Dubrovin, Valeriy, 2011. "Bioenergy in Ukraine--Possibilities of rural development and opportunities for local communities," Energy Policy, Elsevier, vol. 39(6), pages 3370-3379, June.
    6. Iuliia Ogarenko & Klaus Hubacek, 2013. "Eliminating Indirect Energy Subsidies in Ukraine: Estimation of Environmental and Socioeconomic Effects Using Input–Output Modeling," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-27, December.
    7. International Monetary Fund, 2010. "Islamic Republic of Iran: Selected Issues Paper," IMF Staff Country Reports 2010/076, International Monetary Fund.

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    More about this item

    Keywords

    affordability; energy; water; social protection; Ukraine;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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