Template-type: ReDIF-Paper 1.0 Author-Name: Andrew Feltenstein Author-Email: afeltenstein@gsu.edu Author-Workplace-Name: Department of Economics, Andrew Young School of Policy Studies, Georgia State University Author-Name: Biplab DattaA uthor-Email: bdatta2@student.gsu.edu Author-Workplace-Name: Department of Economics, Andrew Young School of Policy Studies, Georgia State University Title: Broad Based Subsidies or Targeted Transfers? An Analysis of the Electricity Subsidy in Pakistan Abstract: This paper studies the incidence of broad-based energy subsidies, and whether poor households could gain from targeted transfer programs financed by savings from energy subsidy reform. We analyze the tariff differential subsidy program in Pakistan, and find that the subsidy is regressive. We conduct a computable general equilibrium exercise and find that reducing energy subsidy would hurt both poor and non-poor households. However, redistributing savings from subsidy reform to poor households would improve poor household’s welfare. Length: 37 pages Creation-Date: 2018-01 File-URL: http://icepp.gsu.edu/files/2018/01/paper1801.pdf File-Format: application/pdf Handle: RePEc:ays:ispwps:paper1801