New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations

May 28, 2015

Preview Citation

Format: Chicago

Andrea Gamba. New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations, (USA: International Monetary Fund, 2015) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Jordan’s initiatives to reduce its energy dependency could have substantial macroeconomic implications, but will crucially depend on the level of international oil prices in the next decade. Significant uncertainties remain regarding the feasibility of the initiatives and their potential fiscal costs, including from contingent liabilities, could be very large. Given the lead time required for such major investments, work should start now on: (i) conducting comprehensive cost-benefits analysis of these projects; (ii) addressing the challenges arising from the taxation of natural resources; and (iii) designing a fiscal framework to anchor fiscal policies if revenue from these energy projects materializes.

Subject: Commodities, Environment, Imports, International trade, Oil, Oil prices, Prices, Renewable energy, Tariffs, Taxes

Keywords: Authority, Cost, Energy, Energy strategy, Fiscal policy, Fuel mix, Import bill, Import savings, Imports, Jordan, Maintenance cost, Middle East, Monopoly power, NEPCO cost recovery, Oil, Oil prices, Renewable energy, Tariffs, WP

Publication Details

Pages:

21
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2015/115
Stock No:

WPIEA2015115
ISBN:

9781513544038
ISSN:

1018-5941

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