Now more than ever: Reforming energy subsidies throughout the world

Benedict Clements, Stefania Fabrizio, Ian Parry 27 April 2013 Energy-subsidy reform is notoriously difficult. This column argues that the environmental and social payoff from a concerted worldwide effort to replace these subsidies with better targeted measures would be substantial. Subsidy reform is an especially attractive option for countries under pressure to bring publi...

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Welfare effects of energy subsidy reform in developing countries

Abstract We analyze the potential welfare effect of energy subsidy reforms. The income distributions of eleven developing countries from different geographical regions are simulated using the assumption that income is lognormally distributed. We use the concept of the compensating variation to measure how much compensation is required to compensate consumers for a price incr...

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Fossil Fuel Subsidy Reform in the Developing World: Who Wins, Who Loses, and Why?

Abstract Fossil fuel subsidies are widespread in developing countries, where reform efforts are often derailed by disputes over the likely distribution of gains and losses. The impacts of subsidy reform are transmitted to households through changes in energy prices and prices of other goods and services, as well as through factor earnings. Most empirical studies focus on con...

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