## New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations

_IMF Working Papers, May 28, 2015_

## Source details

**Canonical URL:** [New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations](https://www.imf.org/en/publications/wp/issues/2016/12/31/new-energy-sources-for-jordan-macroeconomic-impact-and-policy-considerations-42965)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/new-energy-sources-for-jordan-macroeconomic-impact-and-policy-considerations-42965/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/new-energy-sources-for-jordan-macroeconomic-impact-and-policy-considerations-42965/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/new-energy-sources-for-jordan-macroeconomic-impact-and-policy-considerations-42965/bundle-manifest.json)

## 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*

---

## Content in this bundle

- **_wp15115**
  - [_wp15115 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp15115.pdf.md){rel="alternate" type="text/markdown"}
  - [_wp15115 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp15115.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/new-energy-sources-for-jordan-macroeconomic-impact-and-policy-considerations-42965_