Implementing Energy Subsidy Reforms : An Overview of the Key Issues
Poorly implemented energy subsidies are economically costly to taxpayers and damage the environment. This report describes the emerging lessons that could help policy makers to address implementation challenges, including overcoming political econo...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/07/16481583/implementing-energy-subsidy-reforms-overview-key-issues http://hdl.handle.net/10986/11934 |
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okr-10986-11934 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO ELECTRICITY ADVERSE IMPACT AIR AIR POLLUTANTS APPROACH BALANCE BARRIERS TO ENTRY BENCHMARK BONDS CARBON CARBON TAX CLEANER ENERGY CONSUMPTION OF FUEL COST OF ENERGY DEBT DEMAND ELASTICITIES DEMAND FOR ELECTRICITY DEMAND FOR GASOLINE DEVALUATION DEVELOPMENT POLICY DIESEL DIESEL FUEL DIESEL FUEL CONSUMPTION DIESEL FUELS DISTRICT HEATING DOMESTIC ENERGY DRIVERS ECONOMIC VALUE ELASTICITIES ELASTICITIES OF ROAD TRAFFIC ELASTICITY OF FUEL CONSUMPTION ELECTRIC POWER ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY DEMAND ELECTRICITY DISTRIBUTION ELECTRICITY PRICE ELECTRICITY PRICES ELECTRICITY SECTOR ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRIFICATION EMISSIONS END-USE ENERGY BILL ENERGY BILLS ENERGY CONSUMERS ENERGY COSTS ENERGY EFFICIENCY ENERGY EXPENDITURES ENERGY INTENSITY ENERGY NEEDS ENERGY POLICY ENERGY PRICES ENERGY PRICING ENERGY PRODUCTS ENERGY SERVICE ENERGY SOURCES ENERGY SUPPLY ENERGY TECHNOLOGIES ENERGY USE ENVIRONMENTAL POLICY EXPORTS FINANCIAL EFFICIENCY FINANCIAL PERFORMANCE FISCAL POLICIES FOSSIL FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUEL PRICES FOSSIL FUELS FUEL PRICE FUEL PRICE INCREASES FUEL SUBSIDIES FUELS GAS SECTOR GAS SECTORS GASOLINE CONSUMPTION GASOLINE PRICES GDP GDP PER CAPITA GREENHOUSE GREENHOUSE GAS GROSS DOMESTIC PRODUCT HEAT HEAVY OIL HEAVY RELIANCE HIGH ENERGY HIGHER ENERGY CONSUMPTION HOUSEHOLD EXPENDITURES HUMAN CAPITAL IMPROVING ENERGY EFFICIENCY INCOME INCOME EFFECT INCOME GROUPS INCOME LEVELS INEFFICIENCY INELASTIC DEMAND INTERNAL COMBUSTION INTERNAL COMBUSTION ENGINES KEROSENE MIDDLE INCOME COUNTRIES MOTOR VEHICLES NATURAL GAS OIL OIL COMPANY OIL EQUIVALENT PER CAPITA INCOME PERSONAL VEHICLES PETROLEUM PETROLEUM PRODUCTS PILOT PROJECTS POLITICAL ECONOMY POWER POWER CONSUMPTION POWER PLANTS POWER SECTOR POWER SECTORS PRICE ELASTICITY PRICE OF DIESEL PRICE OF ELECTRICITY PRICE OF GASOLINE PRICE SUBSIDIES PRIVATE TRANSPORT PRODUCTION OF POWER PUBLIC TRANSPORT REAL INCOME REGULATORY FRAMEWORK RESIDENTIAL CONSUMERS RESIDENTIAL ENERGY ROAD ROAD SECTOR RURAL ELECTRIFICATION SAFETY SAFETY NETS SPACE COOLING SPACE HEATING SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY TARIFF STRUCTURE TRANSPORT TRANSPORT SECTOR TRANSPORTATION TRUE UTILITIES VEHICLES WELFARE LOSSES |
| spellingShingle |
ACCESS TO ELECTRICITY ADVERSE IMPACT AIR AIR POLLUTANTS APPROACH BALANCE BARRIERS TO ENTRY BENCHMARK BONDS CARBON CARBON TAX CLEANER ENERGY CONSUMPTION OF FUEL COST OF ENERGY DEBT DEMAND ELASTICITIES DEMAND FOR ELECTRICITY DEMAND FOR GASOLINE DEVALUATION DEVELOPMENT POLICY DIESEL DIESEL FUEL DIESEL FUEL CONSUMPTION DIESEL FUELS DISTRICT HEATING DOMESTIC ENERGY DRIVERS ECONOMIC VALUE ELASTICITIES ELASTICITIES OF ROAD TRAFFIC ELASTICITY OF FUEL CONSUMPTION ELECTRIC POWER ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY DEMAND ELECTRICITY DISTRIBUTION ELECTRICITY PRICE ELECTRICITY PRICES ELECTRICITY SECTOR ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRIFICATION EMISSIONS END-USE ENERGY BILL ENERGY BILLS ENERGY CONSUMERS ENERGY COSTS ENERGY EFFICIENCY ENERGY EXPENDITURES ENERGY INTENSITY ENERGY NEEDS ENERGY POLICY ENERGY PRICES ENERGY PRICING ENERGY PRODUCTS ENERGY SERVICE ENERGY SOURCES ENERGY SUPPLY ENERGY TECHNOLOGIES ENERGY USE ENVIRONMENTAL POLICY EXPORTS FINANCIAL EFFICIENCY FINANCIAL PERFORMANCE FISCAL POLICIES FOSSIL FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUEL PRICES FOSSIL FUELS FUEL PRICE FUEL PRICE INCREASES FUEL SUBSIDIES FUELS GAS SECTOR GAS SECTORS GASOLINE CONSUMPTION GASOLINE PRICES GDP GDP PER CAPITA GREENHOUSE GREENHOUSE GAS GROSS DOMESTIC PRODUCT HEAT HEAVY OIL HEAVY RELIANCE HIGH ENERGY HIGHER ENERGY CONSUMPTION HOUSEHOLD EXPENDITURES HUMAN CAPITAL IMPROVING ENERGY EFFICIENCY INCOME INCOME EFFECT INCOME GROUPS INCOME LEVELS INEFFICIENCY INELASTIC DEMAND INTERNAL COMBUSTION INTERNAL COMBUSTION ENGINES KEROSENE MIDDLE INCOME COUNTRIES MOTOR VEHICLES NATURAL GAS OIL OIL COMPANY OIL EQUIVALENT PER CAPITA INCOME PERSONAL VEHICLES PETROLEUM PETROLEUM PRODUCTS PILOT PROJECTS POLITICAL ECONOMY POWER POWER CONSUMPTION POWER PLANTS POWER SECTOR POWER SECTORS PRICE ELASTICITY PRICE OF DIESEL PRICE OF ELECTRICITY PRICE OF GASOLINE PRICE SUBSIDIES PRIVATE TRANSPORT PRODUCTION OF POWER PUBLIC TRANSPORT REAL INCOME REGULATORY FRAMEWORK RESIDENTIAL CONSUMERS RESIDENTIAL ENERGY ROAD ROAD SECTOR RURAL ELECTRIFICATION SAFETY SAFETY NETS SPACE COOLING SPACE HEATING SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY TARIFF STRUCTURE TRANSPORT TRANSPORT SECTOR TRANSPORTATION TRUE UTILITIES VEHICLES WELFARE LOSSES Vagliasindi, Maria Implementing Energy Subsidy Reforms : An Overview of the Key Issues |
| relation |
Policy Research Working Paper; No. 6122 |
| description |
Poorly implemented energy subsidies are
economically costly to taxpayers and damage the environment.
This report describes the emerging lessons that could help
policy makers to address implementation challenges,
including overcoming political economy and affordability
constraints. The analysis provides strong evidence of the
success of reforms in reducing the associated fiscal burden.
For the selected sample of 20 developing countries, the
average energy subsidy recorded in the budget was reduced
from 1.8 percent in 2004 to 1.3 percent of gross domestic
product in 2010. The reduction of subsidies is particularly
remarkable for net energy importers. In spite of the
relatively price inelastic demand for gasoline and diesel,
fossil fuel consumption in the road sector (per unit of
gross domestic product) declined in the 20 countries
examined from 53 (44) in 2002 to about 23 kilotonnes oil
equivalent per million of gross domestic product in 2008 in
the case of gasoline (diesel). The most notable decline in
consumption was recorded in the low-income and
lower-middle-income countries. This reflects the much higher
rate of growth in gross domestic product in this group of
countries. And it underlines the opportunities to influence
future consumption behavior rather than modifying the
existing consumption patterns, overcoming inertia and vested
interests. Similar trends are recorded for power
consumption. While there is no one-size-fits-all model for
subsidy reform, implementation of compensatory social
policies and an effective communication strategy, before the
changes were introduced, made a difference in securing the
successful implementation of reforms. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Vagliasindi, Maria |
| author_facet |
Vagliasindi, Maria |
| author_sort |
Vagliasindi, Maria |
| title |
Implementing Energy Subsidy Reforms : An Overview of the Key Issues |
| title_short |
Implementing Energy Subsidy Reforms : An Overview of the Key Issues |
| title_full |
Implementing Energy Subsidy Reforms : An Overview of the Key Issues |
| title_fullStr |
Implementing Energy Subsidy Reforms : An Overview of the Key Issues |
| title_full_unstemmed |
Implementing Energy Subsidy Reforms : An Overview of the Key Issues |
| title_sort |
implementing energy subsidy reforms : an overview of the key issues |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/07/16481583/implementing-energy-subsidy-reforms-overview-key-issues http://hdl.handle.net/10986/11934 |
| _version_ |
1764418538606428160 |
| spelling |
okr-10986-119342021-04-23T14:02:58Z Implementing Energy Subsidy Reforms : An Overview of the Key Issues Vagliasindi, Maria ACCESS TO ELECTRICITY ADVERSE IMPACT AIR AIR POLLUTANTS APPROACH BALANCE BARRIERS TO ENTRY BENCHMARK BONDS CARBON CARBON TAX CLEANER ENERGY CONSUMPTION OF FUEL COST OF ENERGY DEBT DEMAND ELASTICITIES DEMAND FOR ELECTRICITY DEMAND FOR GASOLINE DEVALUATION DEVELOPMENT POLICY DIESEL DIESEL FUEL DIESEL FUEL CONSUMPTION DIESEL FUELS DISTRICT HEATING DOMESTIC ENERGY DRIVERS ECONOMIC VALUE ELASTICITIES ELASTICITIES OF ROAD TRAFFIC ELASTICITY OF FUEL CONSUMPTION ELECTRIC POWER ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY DEMAND ELECTRICITY DISTRIBUTION ELECTRICITY PRICE ELECTRICITY PRICES ELECTRICITY SECTOR ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRIFICATION EMISSIONS END-USE ENERGY BILL ENERGY BILLS ENERGY CONSUMERS ENERGY COSTS ENERGY EFFICIENCY ENERGY EXPENDITURES ENERGY INTENSITY ENERGY NEEDS ENERGY POLICY ENERGY PRICES ENERGY PRICING ENERGY PRODUCTS ENERGY SERVICE ENERGY SOURCES ENERGY SUPPLY ENERGY TECHNOLOGIES ENERGY USE ENVIRONMENTAL POLICY EXPORTS FINANCIAL EFFICIENCY FINANCIAL PERFORMANCE FISCAL POLICIES FOSSIL FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUEL PRICES FOSSIL FUELS FUEL PRICE FUEL PRICE INCREASES FUEL SUBSIDIES FUELS GAS SECTOR GAS SECTORS GASOLINE CONSUMPTION GASOLINE PRICES GDP GDP PER CAPITA GREENHOUSE GREENHOUSE GAS GROSS DOMESTIC PRODUCT HEAT HEAVY OIL HEAVY RELIANCE HIGH ENERGY HIGHER ENERGY CONSUMPTION HOUSEHOLD EXPENDITURES HUMAN CAPITAL IMPROVING ENERGY EFFICIENCY INCOME INCOME EFFECT INCOME GROUPS INCOME LEVELS INEFFICIENCY INELASTIC DEMAND INTERNAL COMBUSTION INTERNAL COMBUSTION ENGINES KEROSENE MIDDLE INCOME COUNTRIES MOTOR VEHICLES NATURAL GAS OIL OIL COMPANY OIL EQUIVALENT PER CAPITA INCOME PERSONAL VEHICLES PETROLEUM PETROLEUM PRODUCTS PILOT PROJECTS POLITICAL ECONOMY POWER POWER CONSUMPTION POWER PLANTS POWER SECTOR POWER SECTORS PRICE ELASTICITY PRICE OF DIESEL PRICE OF ELECTRICITY PRICE OF GASOLINE PRICE SUBSIDIES PRIVATE TRANSPORT PRODUCTION OF POWER PUBLIC TRANSPORT REAL INCOME REGULATORY FRAMEWORK RESIDENTIAL CONSUMERS RESIDENTIAL ENERGY ROAD ROAD SECTOR RURAL ELECTRIFICATION SAFETY SAFETY NETS SPACE COOLING SPACE HEATING SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY TARIFF STRUCTURE TRANSPORT TRANSPORT SECTOR TRANSPORTATION TRUE UTILITIES VEHICLES WELFARE LOSSES Poorly implemented energy subsidies are economically costly to taxpayers and damage the environment. This report describes the emerging lessons that could help policy makers to address implementation challenges, including overcoming political economy and affordability constraints. The analysis provides strong evidence of the success of reforms in reducing the associated fiscal burden. For the selected sample of 20 developing countries, the average energy subsidy recorded in the budget was reduced from 1.8 percent in 2004 to 1.3 percent of gross domestic product in 2010. The reduction of subsidies is particularly remarkable for net energy importers. In spite of the relatively price inelastic demand for gasoline and diesel, fossil fuel consumption in the road sector (per unit of gross domestic product) declined in the 20 countries examined from 53 (44) in 2002 to about 23 kilotonnes oil equivalent per million of gross domestic product in 2008 in the case of gasoline (diesel). The most notable decline in consumption was recorded in the low-income and lower-middle-income countries. This reflects the much higher rate of growth in gross domestic product in this group of countries. And it underlines the opportunities to influence future consumption behavior rather than modifying the existing consumption patterns, overcoming inertia and vested interests. Similar trends are recorded for power consumption. While there is no one-size-fits-all model for subsidy reform, implementation of compensatory social policies and an effective communication strategy, before the changes were introduced, made a difference in securing the successful implementation of reforms. 2012-12-07T18:15:53Z 2012-12-07T18:15:53Z 2012-07 http://documents.worldbank.org/curated/en/2012/07/16481583/implementing-energy-subsidy-reforms-overview-key-issues http://hdl.handle.net/10986/11934 English en_US Policy Research Working Paper; No. 6122 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |