Algeria: Selected Issues

IMF Staff Country Reports, April 12, 2024

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Algeria: Selected Issues

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Bibliographic details

• Published: April 12, 2024
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400271922.002

Summary and Scope

• Examines the macroeconomic and fiscal implications of climate change in Algeria.
• Highlights risks from projected shifts in weather patterns and from Algeria’s hydrocarbon-reliant growth model amid the global energy transition.
• Notes that the projected shift in climate patterns over the coming decades poses risks to prosperity, food security, and social development, with most of Algeria’s population already living under challenging climate conditions.
• Discusses fiscal policy options to achieve Algeria’s climate goals.

Climate Risks and Development Implications

• Projected shifts in climate patterns over the coming decades pose risks to:
  • prosperity
  • food security
  • social development
• Most of the population already living under challenging climate conditions increases vulnerability to those risks.

Fiscal Policy Analysis and CPAT Findings

• Uses the joint IMF-World Bank Climate Policy Assessment Tool (CPAT) for analysis.
• CPAT-based results suggest that even partial elimination of existing energy subsidies would:
  • help Algeria achieve its greenhouse gases emission reduction goals
  • boost fiscal revenue
  • encourage the expansion of renewable energy
  • generate considerable environmental and public health benefits
• These reforms would create fiscal space for priority budget spending, including:
  • targeted social transfers
  • investment in adaptation to climate change

Public Finance Management and Growth Outcomes

• Strengthening public finance management would enable Algeria to maximize the growth and green dividend of public spending.

Subjects and Keywords

• Subject: Climate change, Climate policy, Environment, Greenhouse gas emissions, International organization, Monetary policy, Natural disasters
• Keywords: addressing climate change challenge, B. Algeria's climate change, B. fiscal policy, Climate change, Climate policy, CPAT simulation, emissions of greenhouse gases, Global, Greenhouse gas emissions, Natural disasters

Content in this bundle

• Algeria: Selected Issues; IMF Country Report No. 24/89; March 7, 2024
  • Algeria: Selected Issues; IMF Country Report No. 24/89; March 7, 2024 (Markdown version)
  • Algeria: Selected Issues; IMF Country Report No. 24/89; March 7, 2024 (PDF)