{
  "title": "Energy Subsidies and Energy Consumption: A Cross-Country Analysis",
  "publication": "IMF Working Papers, May 16, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/energy-subsidies-and-energy-consumption-a-cross-country-analysis-40544",
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  "summary": "The economic and environmental implications of energy subsidies have received renewed attention from policymakers and economists in recent years. Nevertheless there remains significant uncertainty regarding the magnitude of the impact of energy subsidies on energy consumption.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Research objective: analyze a panel of cross-country data to explore the responsiveness of energy consumption to changes in energy prices and implications for energy subsidy reform.\n- Core finding: long-term price elasticity of energy demand between -0.3 and -0.5.\n- Short-term finding: short-term gains from subsidy reform are likely to be much smaller.\n- Policy suggestion from authors: consider either a gradual approach to subsidy reform or provide more generous safety nets in the short term."
    },
    {
      "heading": "Key findings and quantitative results",
      "content": "- Long-term price elasticity of energy demand: between -0.3 and -0.5.\n- Short-term effects: quantitatively smaller than long-term effects (exact short-term elasticity values not reported on the landing page)."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Reform of energy subsidies can yield significant long-term benefits given estimated long-term elasticities.\n- Because short-term gains are likely to be much smaller:\n  - Adopt a gradual approach to subsidy reform, or\n  - Provide more generous safety nets during the transition period.\n\n---\n\n Content in this bundle\n\n- Wp13112\n  - Wp13112 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp13112 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/energy-subsidies-and-energy-consumption-a-cross-country-analysis-40544"
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    "Authors: Joshua Charap, Arthur Ribeiro da Silva, Pedro C Rodriguez",
    "Published: May 16, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484367247.001",
    "Research objective: analyze a panel of cross-country data to explore the responsiveness of energy consumption to changes in energy prices and implications for energy subsidy reform.",
    "Core finding: long-term price elasticity of energy demand between -0.3 and -0.5.",
    "Short-term finding: short-term gains from subsidy reform are likely to be much smaller.",
    "Policy suggestion from authors: consider either a gradual approach to subsidy reform or provide more generous safety nets in the short term.",
    "Long-term price elasticity of energy demand: between -0.3 and -0.5.",
    "Short-term effects: quantitatively smaller than long-term effects (exact short-term elasticity values not reported on the landing page).",
    "Reform of energy subsidies can yield significant long-term benefits given estimated long-term elasticities.",
    "Because short-term gains are likely to be much smaller:",
    "**Wp13112**"
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