## Energy Subsidy Reform - Lessons and Implications

_Policy Papers, January 28, 2013_

## Source details

**Canonical URL:** [Energy Subsidy Reform - Lessons and Implications](https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/energy-subsidy-reform-lessons-and-implications-pp4741)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2016/12/31/energy-subsidy-reform-lessons-and-implications-pp4741/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2016/12/31/energy-subsidy-reform-lessons-and-implications-pp4741/index.json)
- [Bundle manifest](/en/publications/policy-papers/issues/2016/12/31/energy-subsidy-reform-lessons-and-implications-pp4741/bundle-manifest.json)

## Bibliographic details
- Published: January 28, 2013
- Series: Policy Papers

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### 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.*

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## Content in this bundle

- **Energy Subsidy reform--Lessons and Implications; IMF Policy Paper; January 28, 2013**
  - [Energy Subsidy reform--Lessons and Implications; IMF Policy Paper; January 28, 2013 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2013/_012813.pdf.md){rel="alternate" type="text/markdown"}
  - [Energy Subsidy reform--Lessons and Implications; IMF Policy Paper; January 28, 2013 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2013/_012813.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/energy-subsidy-reform-lessons-and-implications-pp4741_