The main objective of this paper is to propose a new analytical framework to diagnose progress toward ending extreme poverty. The World Bank has recently announced twin goals of “ending extreme poverty” and “promoting shared prosperity,” both of which are pursued in an environmentally, socially and fiscally sustainable manner.

This policy note examines the poverty and distribution impact of one such reform – residential electricity tariff increases - along with their fiscal implications. A challenge of such adjustments is how to minimize their impact on the poor and vulnerable.