IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/15-250.html
   My bibliography  Save this paper

The Unequal Benefits of Fuel Subsidies Revisited; Evidence for Developing Countries

Author

Listed:
  • David Coady
  • Valentina Flamini
  • Louis Sears

Abstract

Understanding who benefits from fuel price subsidies and the welfare impact of increasing fuel prices is key to designing, and gaining public support for, subsidy reform. This paper updates evidence for developing countries on the magnitude of the welfare impact of subsidy reform and its distribution across income groups, incorporating more recent studies and expanding the number of countries. These studies confirm that a very large share of benefits from price subsidies goes to high-income households, further reinforcing existing income inequalities. The results can also help to approximate the welfare impact of subsidy reform for countries where the data necessary for such an analysis is not available.

Suggested Citation

  • David Coady & Valentina Flamini & Louis Sears, 2015. "The Unequal Benefits of Fuel Subsidies Revisited; Evidence for Developing Countries," IMF Working Papers 15/250, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:15/250
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=43422
    Download Restriction: no

    References listed on IDEAS

    as
    1. Arze del Granado, Francisco Javier & Coady, David & Gillingham, Robert, 2012. "The Unequal Benefits of Fuel Subsidies: A Review of Evidence for Developing Countries," World Development, Elsevier, vol. 40(11), pages 2234-2248.
    2. Marito Garcia & Charity M. T. Moore, 2012. "The Cash Dividend : The Rise of Cash Transfer Programs in Sub-Saharan Africa," World Bank Publications, The World Bank, number 2246, December.
    3. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597, December.
    4. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications, The World Bank, number 6582, December.
    5. Victoria Monchuk, 2014. "Reducing Poverty and Investing in People : The New Role of Safety Nets in Africa
      [Réduire la pauvreté et investir dans le capital humain : Le nouveau rôle des filets sociaux en Afrique - études de
      ," World Bank Publications, The World Bank, number 16256, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feng, Kuishuang & Hubacek, Klaus & Liu, Yu & Marchán, Estefanía & Vogt-Schilb, Adrien, 2018. "Managing the distributional effects of energy taxes and subsidy removal in Latin America and the Caribbean," Applied Energy, Elsevier, vol. 225(C), pages 424-436.
    2. Peltovuori, Ville, 2017. "Fossil fuel subsidies in the Pacific island context: Analysis of the case of Kiribati," Energy Policy, Elsevier, vol. 111(C), pages 102-110.
    3. Jun E Rentschler & Nobuhiro Hosoe, 2017. "Illicit dealings: Fossil fuel subsidy reforms and the role of tax evasion and smuggling," GRIPS Discussion Papers 17-05, National Graduate Institute for Policy Studies.
    4. Patrice Ollivaud, 2017. "Improving the allocation and efficiency of public spending in Indonesia," OECD Economics Department Working Papers 1381, OECD Publishing.
    5. Selim Jahan, 2017. "Human Development Report 2016 - Human Development for Everyone," Working Papers id:12021, eSocialSciences.
    6. Rozenberg, Julie & Vogt-Schilb, Adrien & Hallegatte, Stephane, 2020. "Instrument choice and stranded assets in the transition to clean capital," Journal of Environmental Economics and Management, Elsevier, vol. 100(C).
    7. Jon Jellema & Nora Lustig & Valentina Martinez Pabon, 2019. "Are Income Floors Viable In Sub-Saharan Africa?," Commitment to Equity (CEQ) Working Paper Series 86, Tulane University, Department of Economics.
    8. Julie Rozenberg & Adrien Vogt-Schilb & Stephane Hallegatte, 2017. "Instrument Choice and Stranded Assets in the Transition to Clean Capital," IDB Publications (Working Papers) 98039, Inter-American Development Bank.
    9. Coady, David & Parry, Ian & Sears, Louis & Shang, Baoping, 2017. "How Large Are Global Fossil Fuel Subsidies?," World Development, Elsevier, vol. 91(C), pages 11-27.
    10. Harro van Asselt & Kati Kulovesi, 2017. "Seizing the opportunity: tackling fossil fuel subsidies under the UNFCCC," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(3), pages 357-370, June.
    11. Breisinger, Clemens & Mukashov, Askar & Raouf, Mariam & Wiebelt, Manfred, 2019. "Energy subsidy reform for growth and equity in Egypt: The approach matters," Energy Policy, Elsevier, vol. 129(C), pages 661-671.
    12. Moerenhout, Tom S.H. & Sharma, Shruti & Urpelainen, Johannes, 2019. "Commercial and industrial consumers’ perspectives on electricity pricing reform: Evidence from India," Energy Policy, Elsevier, vol. 130(C), pages 162-171.
    13. Andualem Telaye Mengistu & Pablo Benitez & Seneshaw Tamru & Haileselassie Medhin & Michael Toman, 2019. "Exploring Carbon Pricing in Developing Countries: A Macroeconomic Analysis in Ethiopia," Sustainability, MDPI, Open Access Journal, vol. 11(16), pages 1-21, August.
    14. Ian Coxhead & Corbett Grainger, 2018. "Fossil Fuel Subsidy Reform in the Developing World: Who Wins, Who Loses, and Why?," Asian Development Review, MIT Press, vol. 35(2), pages 180-203, September.
    15. Karanfil, Fatih & Omgba, Luc Désiré, 2019. "Do the IMF’s structural adjustment programs help reduce energy consumption and carbon intensity? Evidence from developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 312-323.

    More about this item

    Keywords

    Developing countries; Fuel subsidy reform; welfare impact; distribution; transport; fuel; subsidies; fuel prices; subsidy; Incidence; All Countries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:15/250. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi) The email address of this maintainer does not seem to be valid anymore. Please ask Hassan Zaidi to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/imfffus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.