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Energy Subsidy Reform

Energy Subsidy Reform (ESRx)

Apply online by April 1, 2025 Deadline extended

Session No.: OL 24.148

Location: Course conducted online

Date: May 1, 2024 - April 15, 2025 (50 weeks)

Delivery Method: Online Training

Primary Language: English

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    Target Audience

    All government officials are welcome to register. Officials in finance, economy, and planning ministries who provide advice on macroeconomic policies or implement policy will find the course particularly beneficial. The course is offered in English and Arabic.

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    Qualifications

    Some knowledge of economics would be helpful. Basic Microsoft Excel skills and access to a computer with a reliable Internet connection and a Google Chrome web browser are essential.

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    Course Description

    This online course, presented jointly by the Institute for Capacity Development and the Fiscal Affairs, Middle East and Central Asia, and Asia and Pacific Departments, builds on extensive cross-country analysis and hands-on experience in design of technical assistance and subsidy reform to make recommendations on how best to reduce energy subsidies.The course introduces the concept of energy subsidies - their definition and measurement - and reviews their economic, social, and environmental implications. It also presents toolkits to assess the distributional effects of alternative subsidy reform scenarios and to design a fuel pricing mechanism. Finally, the course reviews what works best in energy subsidy reform and illustrates successes and failures in terms of particular countries.

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    Course Objectives

    Upon completion of this course, participants should be able to:

    • Explain the concept of energy subsidies and estimate pre- and post-tax subsidies.
    • Define corrective energy taxes and explain how to calculate them.
    • Describe the economic, social, and environmental impact of energy subsidies.
    • Explain how to design robust subsidy reform strategies.
    • Design policy responses to mitigate the effects of subsidy reform on inflation and on household welfare.
    • Use an Excel-based toolkit to assess the effects of alternative energy subsidy reform scenarios on households in different income groups.
    • Design effective fuel pricing mechanisms to mitigate fuel price volatility.
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