New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations
IMF Working Papers, May 28, 2015
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Bibliographic details
- Authors: Andrea Gamba
- Published: May 28, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513544038.001
Overview
- Jordan’s initiatives to reduce its energy dependency could have substantial macroeconomic implications.
- The macroeconomic impact 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, which could be very large.
- Given the lead time required for such major investments, preparatory work should start now.
Key findings and uncertainties
- The scale of macroeconomic implications is contingent on international oil prices in the next decade.
- Feasibility of the energy initiatives is uncertain.
- Potential fiscal costs could be very large and include contingent liabilities.
- Important areas of uncertainty include taxation of natural resources and the fiscal management of potential future revenues from energy projects.
Policy recommendations and required preparatory work
- Conduct comprehensive cost-benefit analysis of proposed energy projects.
- Address the challenges arising from the taxation of natural resources.
- Design a fiscal framework to anchor fiscal policies if revenue from these energy projects materializes.
Thematic focus
- Commodities; Environment; Imports; International trade; Oil; Oil prices; Prices; Renewable energy; Tariffs; Taxes.
- Keywords highlighted in the study include: 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.
New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations — Andrea Gamba, May 28, 2015