Energy Sector Quasi-Fiscal Activities in the Countries of the Former Soviet Union

Author/Editor:

Aleh Tsyvinski ; Günther Taube ; Martin Petri

Publication Date:

March 1, 2002

Electronic Access:

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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:

A decade into the transition, many of the successor states of the former Soviet Union (FSU) continue to use energy sector quasi-fiscal activities (QFAs), especially low energy prices and the toleration of payment arrears, to provide large implicit and untargeted subsidies. These activities disguise the overall size of the government, cause overconsumption and waste, and contribute to macroeconomic imbalances. This paper analyses such activities in FSU countries, with particular emphasis on two case studies (Azerbaijan and Ukraine). The paper's policy conclusions point to the need to increase energy prices, combined with a strengthening of safety nets to protect the poor, better enforcement of payment discipline, and more efforts to achieve fiscal transparency.

Series:

Working Paper No. 02/60

Subject:

English

Publication Date:

March 1, 2002

ISBN/ISSN:

9781451848069/1018-5941

Stock No:

WPIEA0602002

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

34

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