IMPROVING ELECTRICITY CONSUMPTION BASED TARGETING FOR SOCIAL PROTECTION VIA THE USE OF COMPOSITE VARIABLES

This research explores innovative methods to improve the targeting of social protection programs in Sri Lanka by combining electricity consumption with composite variables such as household expenditure and food expenditure. Amidst a severe economic crisis exacerbated by the COVID-19 pandemic, the study highlights the inefficiencies of existing welfare programs like Samurdhi and Aswasuma, which often fail to reach the most vulnerable populations. By leveraging electricity consumption as a reliable and accessible indicator, and integrating it with additional variables, the research demonstrates significant improvements in targeting accuracy. The findings reveal that using these composite variables can increase coverage in the lowest income deciles by up to 8.3%, ensuring that social protection benefits reach those who need them most. This study advocates for the adoption of these enhanced targeting methods to create more effective and equitable social welfare systems in Sri Lanka.

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