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Quelles solutions à la hausse continue de la facture publique pétrolière : maintien des appuis à la consommation ou libre fixation des prix par le marché ?
[Impact of energy subsidies withdrawal on senegalese households]

Author

Listed:
  • Diagne, Youssoupha S
  • Diop, Mouhamadou M

Abstract

This paper focuses on the effects of oil subsidies removal on households’ welfare in Senegal. The methodology is based on the estimations of gas and electricity demand functions using data from the Poverty Follow-up Survey. The results suggest a gas subsidies removal in the whole country even though such a policy is still useful to preserve the atmosphere. Regarding the electricity, the findings suggest to revisit the billing system as it favours richer households. Leave gas and electricity market prices could be the right option as their share in households’ total expenditures is low. It is also recommended to use the saved funds in order to stimulate the economic activity.

Suggested Citation

  • Diagne, Youssoupha S & Diop, Mouhamadou M, 2007. "Quelles solutions à la hausse continue de la facture publique pétrolière : maintien des appuis à la consommation ou libre fixation des prix par le marché ? [Impact of energy subsidies withdrawal on," MPRA Paper 54807, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54807
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    File URL: https://mpra.ub.uni-muenchen.de/54807/1/MPRA_paper_54807.pdf
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    References listed on IDEAS

    as
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    2. Chern, Wen S. & Ishibashi, Kimiko & Taniguchi, Kiyoshi & Tokoyama, Yuki, 2002. "Analysis of food consumption behavior by Japanese households," ESA Working Papers 289108, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    3. Mr. Kangni R Kpodar, 2006. "Distributional Effects of Oil Price Changeson Household Expenditures: Evidence From Mali," IMF Working Papers 2006/091, International Monetary Fund.
    4. Sonia Bhalotra, 2002. "Welfare Implications of Fiscal Reform: The Case of Food Subsidies in India," WIDER Working Paper Series DP2002-32, World Institute for Development Economic Research (UNU-WIDER).
    5. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    6. Sourafel Girma & Abbi M. Kedir, 2003. "Quadratic Food Engel Curves with Measurement Error: Evidence from a Budget Survey," Discussion Papers in Economics 03/17, Division of Economics, School of Business, University of Leicester.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Oil subsidies; Households; Engel curves; Semi-parametric models;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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