Energy Subsidy Reform - Lessons and Implications
Policy Papers, January 28, 2013
Source details
- Canonical URL
- Energy Subsidy Reform - Lessons and Implications
Other formats
Bibliographic details
- Published: January 28, 2013
- Series: Policy Papers
Overview and purpose
- Energy subsidies have wide-ranging economic consequences.
- The paper provides:
- (i) the most comprehensive estimates of energy subsidies currently available for 176 countries; and
- (ii) an analysis of “how to do energy subsidy reform,” drawing on insights from 22 country case studies undertaken by IMF staff and analyses carried out by other institutions.
- Publication date: January 28, 2013.
- Subjects: Energy sector, Energy taxes, Fiscal reforms, Subsidies.
Key findings
- While aimed at protecting consumers, subsidies:
- aggravate fiscal imbalances;
- crowd-out priority public spending;
- depress private investment, including in the energy sector.
- Subsidies distort resource allocation by:
- encouraging excessive energy consumption;
- artificially promoting capital-intensive industries;
- reducing incentives for investment in renewable energy;
- accelerating the depletion of natural resources.
- Distributional effects:
- Most subsidy benefits are captured by higher-income households, reinforcing inequality.
- Environmental effects:
- Increased energy consumption driven by subsidies contributes to global warming, affecting future generations.
Coverage and supporting work
- Estimates cover 176 countries.
- Analysis draws on 22 country case studies undertaken by IMF staff and other institutional analyses.
- The IMF eLibrary offers over 25,000 IMF publications in multiple formats.
Availability and languages
- Also available in français.
- Also available in العربية.
Source: Energy Subsidy Reform - Lessons and Implications, January 28, 2013, International Monetary Fund.
Content in this bundle
- Energy Subsidy reform--Lessons and Implications; IMF Policy Paper; January 28, 2013