Water Price Reforms in Senegal: Distributional Impact Analysis

Abstract This paper focuses on the distribution impact from Senegal's water reforms with emphasis on rates reforms. We first analyze the evolution of consumption patterns before and after the reforms. We found that most of the gains accrue to the highest income classes while the poor have seen little changes. We then use a multi-household integrated Computable General Equilibrium model (CGE) to analyze the impact of water pricing reforms on poverty in Senegal. We conclude that the simulated price increases for the sector have marginal effects on government finances but positive effects on most actors except households unless specific transfer programs are introduced to protect the poor.