Modeling Macro-Critical Energy Sectors in Low-Income Countries: A General Framework and an Application to Côte d’Ivoire
IMF Working Papers, June 1, 2008
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- Modeling Macro-Critical Energy Sectors in Low-Income Countries: A General Framework and an Application to Côte d’Ivoire
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Bibliographic details
- Authors: Holger Fabig
- Published: June 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451870145.001
Framework proposed
- Defines the macro-critical energy sector in low-income countries as consisting of three subsectors: crude oil and natural gas production, refinery, and electricity production.
- Aims to derive consistent information on physical and financial flows in the sector, including interlinkages between the subsectors.
Application to Côte d’Ivoire
- Framework is applied to Côte d’Ivoire to assess sector performance and linkages.
- The Ivoirien energy sector is identified as an important source of growth but with significant shortcomings.
Key findings and identified problems
- Transparency:
- Partially intransparent production sharing arrangements for hydrocarbon production.
- Prices and markets:
- Price distortions for natural gas.
- Administered prices for refined petroleum products.
- Electricity subsector:
- Underfunding and lack of investment in the electricity sector.
- Inefficient government subsidies affecting the electricity subsector.
- Fiscal contribution:
- Energy sector shortcomings reduce contribution to fiscal revenue.
- Cross-cutting:
- Inefficiencies and distortions in the latter two subsectors (refined petroleum products and electricity) linked to government subsidies.