• Energy Research
• social sciences close
• 8. Economic growth close
• Université Libre de Bruxelles close

Summary Using an original database of rating agencies, this paper gives empirical evidence on the impact of subsidy intensity on the efficiency of Microfinance Institutions (MFIs). We find that subsidies have had a positive impact on efficiency, in the sense that MFIs that received subsidies are more efficient than those that do not. However, we find also that subsidization beyond a certain threshold renders the marginal effect on efficiency negative. In our sample, 26% of MFIs receive levels of subsidization higher than that threshold, which implies that a marginal cut on subsidy intensity would increase their efficiency.

AbstractThis paper uses a computable general equilibrium (CGE) micro‐simulation model to explore the distributional and poverty‐related effects of price reform in the electricity sector of Mali, a poor country in West Africa. In the first part of the paper we analyse the distribution of electricity in Mali by income deciles, showing that few poor households are connected to the electricity grid. We then apply a sequential CGE micro‐simulation model to track the transmission mechanisms between increases in electricity prices and changes in poverty and inequality among different household groups. Our results show that direct price increases have a minimal effect on poverty and inequality, whereas the general equilibrium effects of such increases are quite strong and negative. The compensating policies we tested do not help those who lose from the pricing reform. In fact they amplify the negative effects.

AbstractMicrofinance institutions (MFIs) generally aim at improving the access of the poor to financial services while at the same time being financially sustainable. But what do we know about how MFIs reach and combine these two goals? We carry out a systematic review of close to 170 papers discussing the determinants of the financial and social performance of MFIs. The review shows that the most important determinants addressed in the literature are MFI characteristics (size, age and type of organization), their funding sources, the quality of organizational governance and the MFIs’ external context such as macro‐economic, institutional and political conditions. The evidence on these issues is rather mixed. Moreover, the direction of the relationship between these drivers and MFI performance depends on the context, particularly the country‐specific context. Finally, there is a lack of consensus in the literature on the measurement of financial and social performance. Due to the complexity of the concept, we argue that social performance should only be assessed by using a multidimensional perspective. This can be done either by applying recent and holistic social performance measures such as the SPI4, or at least by using a combination of proxies, such as outreach, gender and rural measures.

Notional Defined Contribution (NDC) pension schemes are defined contribution plans which are pay-as-you-go financed. From a design viewpoint, the countries where NDCs have been implemented cannot guarantee sustainability due to the choice of notional return paid to the contributions and the indexation rate paid to pensions. We study how the scheme should be designed to achieve liquidity and solvency with a limited set of assumptions in a continuous overlapping generations model that increases traceability of the results. The adequacy and actuarial fairness are also jointly studied in the numerical example for the population of Belgium. We find that the proposed indexation and notional rate act as automatic balancing mechanisms that ensure sustainability and actuarial fairness. However, the effect on pension adequacy depends on the generosity of the annuity scheme at retirement. (C) 2019 Elsevier B.V. All rights reserved.

There are three main challenges facing pay-as-you-go public pension systems. First, pension systems need to provide an adequate income for pensioners in the retirement phase. Second, participants wish a fair level of benefits in relation to the contributions paid. Last but not least, the pension system needs to be financially sustainable in the long run. In this paper, we jointly analyse the adequacy, fairness and sustainability of both defined benefit and defined contribution schemes. Finally, risk sharing mechanisms, that involve changes in the key variables of the system, are designed to restore the financial sustainability while we study their consequences on the adequacy and fairness of the system.

Current public transport supply on the Island of Lanzarote is clearly insufficient, and opportunities to substitute private automobiles are extremely limited, for residents and tourists alike. Therefore, this paper analyzes the possibility of introducing a tourist bus service to connect Lanzarote’s main tourist attractions, and it also focuses on a move towards public transport by tourists to reduce the CO2 emitted by excessive private car usage. This work assesses the impact of road transport in accessing tourist activities on Lanzarote Island and its implications for sustainable tourism development. The evaluation is based on the volume of CO2 emissions for the current tourist mobility model on the island and an alternative option such as a tourist bus route. The methodology employed here is the application of a geographical information system (GIS). The study analyzes how to manage the impact of road access to tourist sites through the implementation of a new tourist bus line. The study seeks to evaluate the design of a new bus to deliver tourists to key tourist activities on Lanzarote Island. A GIS-T algorithm is used to compare the level of CO2 emissions from the current tourist mobility model versus the implementation of a new touristic bus. The levels of pollution produced by the present system and the tourist route are compared, and different levels of demand for the new circuit are considered. We conclude that in order to reduce the current levels of emissions by around 15%, some 19.4% of the tourists that currently use hire cars would have to switch to the new tourist bus service.

This paper provides a “back-of-the-envelope” assessment of the efficiency effects of the reforms of the water sector in Argentina. Private operators are now key players in 15 of Argentina's provinces. While all have adopted incentive based regulatory regimes which require estimates of economic efficiency changes, none have actually issued any estimate yet. This paper provides upper bounds estimates of efficiency gains achieved for four operators. The paper concludes with a discussion of the implication of the results for regulatory accounting and data collection processes by regulators in developing countries relying on incentive based regulatory systems.