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Reforming subsidies : a tool-kit for policy simulations

Author

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  • Araar, Abdelkrim
  • Verme, Paolo

Abstract

The paper provides basic guidelines and tools for simulating subsidy reforms with Stata using a single cross-section survey. Simulations are discussed under a partial equilibrium and medium-term framework using a marginal approach. The paper distinguishes between single priced products, such as fuel or bread, and multiple priced products, such as household utilities. Part I provides basic instructions for carrying out subsidy analyses. Part II outlines economic theory and formulae for the two types of products considered. Part III illustrates the use of the Stata codes, which are downloadable from the Internet.

Suggested Citation

  • Araar, Abdelkrim & Verme, Paolo, 2012. "Reforming subsidies : a tool-kit for policy simulations," Policy Research Working Paper Series 6148, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6148
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    Citations

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    Cited by:

    1. Andrés Camilo ÁLVAREZ-ESPINOSA & Daniel Alejandro ORDOÑEZ & Alejandro NIETO & William WILLS & German ROMERO & Silvia Liliana CALDERÓN, 2015. "Compromiso de Reducción de Emisiones de Gases de Efecto Invernadero: Consecuencias económicas," Archivos de Economía 14157, Departamento Nacional de Planeación.
    2. Rentschler, Jun, 2016. "Incidence and impact: The regional variation of poverty effects due to fossil fuel subsidy reform," Energy Policy, Elsevier, vol. 96(C), pages 491-503.
    3. Cecile Couharde & Sara Mouhoud, 2020. "Fossil Fuel Subsidies, Income Inequality, And Poverty: Evidence From Developing Countries," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 981-1006, December.
    4. Paolo Verme & Abdelkrim Araar, 2017. "The Quest for Subsidies Reforms in the Middle East and North Africa Region," World Bank Publications - Books, The World Bank Group, number 25783, December.
    5. Abdelkrim Araar & Nada Choueiri & Paolo Verme, 2017. "The Quest for Subsidy Reforms in Libya," Natural Resource Management and Policy, in: Paolo Verme & Abdlekrim Araar (ed.), The Quest for Subsidy Reforms in the Middle East and North Africa Region, chapter 0, pages 119-156, Springer.
    6. Jun Rentschler & Morgan Bazilian, 2017. "Policy Monitor—Principles for Designing Effective Fossil Fuel Subsidy Reforms," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(1), pages 138-155.
    7. Jose Cuesta & Abdel-Rahmen El Lahga & Gabriel Lara Ibarra, 2017. "The Socioeconomic Impacts of Energy Reform in Tunisia: A Simulation Approach," Natural Resource Management and Policy, in: Paolo Verme & Abdlekrim Araar (ed.), The Quest for Subsidy Reforms in the Middle East and North Africa Region, chapter 0, pages 91-117, Springer.
    8. World Bank, 2016. "Tunisia Poverty Assessment 2015," World Bank Publications - Reports 24410, The World Bank Group.
    9. Rentschler, Jun & Kornejew, Martin & Bazilian, Morgan, 2017. "Fossil fuel subsidy reforms and their impacts on firms," Energy Policy, Elsevier, vol. 108(C), pages 617-623.
    10. Aiman Albatayneh & Adel Juaidi & Francisco Manzano-Agugliaro, 2023. "The Negative Impact of Electrical Energy Subsidies on the Energy Consumption—Case Study from Jordan," Energies, MDPI, vol. 16(2), pages 1-17, January.
    11. Ahmadi Murjani, 2020. "Assessing the Energy Subsidy Reform in Indonesia through Different Scenarios," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 122-134.

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