Reference Document: Social Safety Net Options for Energy Sector Reform
The objective of this document is to create a concise, functional guide which will
inform policymakers of the advantages and disadvantages of several social safety net
programs designed to protect vulnerable populations during energy sector reforms. The
paper reviews three different approaches to alleviating the effects of increased energy
prices, including energy efficiency projects, social tariffs, and social welfare payments.
An overview of the methodology as well as the merits and shortcomings of each
approach will be discussed in detail in order to better allow policymakers to formulate
country-specific social safety nets. Selected case studies from the Southeast Europe and
Eurasia region will be included to demonstrate “best practices” and serve as an example
for future program implementation.
Recommendations will draw from work on the topic done by other international
development agencies, multilateral institutions, non-governmental organization working
groups, as well as academic journal articles.
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