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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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Author Info
Holger Fabig
Abstract

This paper proposes a general framework for monitoring macro-critical energy sectors in low-income countries, defined as consisting of the three subsectors of crude oil and natural gas production, refinery, and electricity production. It aims to derive consistent information on physical and financial flows in the sector, including on interlinkages between the subsectors. It then applies this framework to Côte d'Ivoire. While being an important source of growth, the Ivoirien energy sector is found to have important shortcomings, in particular as regards transparency, efficiency and contribution to fiscal revenue. Among the key problems are partially intransparent production sharing arrangements for hydrocarbon production, price distortions for natural gas, administered prices for refined petroleum products, underfunding and lack of investment in the electricity sector, and inefficient government subsidies in the latter two subsectors.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/156.

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Length: 30 pages
Date of creation: 25 Jun 2008
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Handle: RePEc:imf:imfwpa:08/156

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Related research
Keywords: Working Paper ; Côte d'Ivoire ; Energy sector ; Oil production ; Natural gas ; Electric power ; Hydrocarbons ; Transparency ;

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  1. Berrie, T. W., 1983. "Making energy sector assessment studies in LDCs," Energy Policy, Elsevier, vol. 11(4), pages 291-301, December. [Downloadable!] (restricted)
  2. Rina Bhattacharya & Dhaneshwar Ghura, 2006. "Oil and Growth in the Republic of Congo," IMF Working Papers 06/185, International Monetary Fund. [Downloadable!]
  3. R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
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