Distributional Effects of Oil Price Changeson Household Expenditures
AbstractUsing an input-output approach, this paper assesses the distributional effects of a rise in various petroleum product prices in Mali. The results show that, although rising gasoline and diesel prices affect mainly nonpoor households, rising kerosene prices are most harmful to the poor. Overall, the impact of fuel prices on household budgets displays a U-shaped relationship with expenditure per capita. Regardless of the oil product considered, highincome households would benefit disproportionately from oil price subsidies. This suggests that a petroleum price subsidy is an ineffective mechanism for protecting the income of poor households compared with a targeted subsidy.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 06/91.
Date of creation: 01 Mar 2006
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Other versions of this item:
- Kangni Kpodar, 2011. "Impact de l'accroissement du prix des produits pétroliers sur la distribution des revenus au Mali," Working Papers halshs-00557133, HAL.
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