Energy subsidy reform: lessons and implications - Softcover

"This volume provides the most comprehensive estimates of worldwide energy subsidies currently available, drawing on data from 176 countries in the areas of petroleum products, natural gas, coal, and electricity. It lays out an analysis of "how to do" energy subsidy reform, drawing on insights from 22 country case studies and analyses carried out by other institutions, and it offers summary narratives and analyses of reform efforts undertaken in each of those 22 countries"--Preface.

Energy subsidies have wide-ranging economic consequences. Although they are aimed at protecting consumers, subsidies aggravate fiscal imbalances, crowd out priority public spending, and depress private investment, including in the energy sector. Subsidies also distort resource allocation by encouraging excessive energy consumption, artificially promoting capital-intensive industries, reducing incentives for investment in renewable energy, and accelerating the depletion of natural resources. Most subsidy benefits are captured by higher-income households, reinforcing inequality. Even future generations are affected through the damaging effects of increased energy consumption on global warming. This book provides (1) the most comprehensive estimates of energy subsidies currently available for 176 countries and (2) an analysis of 'how to do' energy subsidy reform, drawing on insights from 22 country case studies undertaken by the IMF staff and analyses carried out by other institutions.