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Estimating the impact on poverty of Ghana’s fuel subsidy reform and a mitigating response

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  • Edgar F.A. Cooke
  • Sarah Hague
  • John Cockburn
  • Abdel-Rahmen El Lahga
  • Luca Tiberti

Abstract

Governments across Africa have faced increasing challenges to maintain fuel subsidies over recent years. In Ghana, in the face of a near 12% fiscal deficit in 2012, their burgeoning cost has drawn attention to questions of fiscal sustainability as well as their overall efficiency and effectiveness. In 2013, the Ghanaian Government would have spent cost 2.4 billion GHS (approximately 1.2 billion USD) on fuel subsidies, equalling 3.2% of GDP and more than half of Ghana's allocation to the entire education sector. Fuel subsidies....

Suggested Citation

  • Edgar F.A. Cooke & Sarah Hague & John Cockburn & Abdel-Rahmen El Lahga & Luca Tiberti, 2014. "Estimating the impact on poverty of Ghana’s fuel subsidy reform and a mitigating response," Working Papers MPIA 2014-02, PEP-MPIA.
    • Handle: RePEc:lvl:mpiacr:2014-02
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    References listed on IDEAS

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    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. Maria Vagliasindi, 2013. "Implementing Energy Subsidy Reforms : Evidence from Developing Countries," World Bank Publications - Books, The World Bank Group, number 11965, December.
    3. repec:wbk:wbpubs:13081 is not listed on IDEAS
    4. Quentin Wodon, 2012. "Improving the Targeting of Social Programs in Ghana," World Bank Publications - Books, The World Bank Group, number 13082, December.
    5. Mr. David Coady & Mr. Javier Arze del Granado, 2010. "The Unequal Benefits of Fuel Subsidies: A Review of Evidence for Developing Countries," IMF Working Papers 2010/202, International Monetary Fund.
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    Cited by:

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    2. 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.
    3. Stefan Bakker & Gary Haq & Karl Peet & Sudhir Gota & Nikola Medimorec & Alice Yiu & Gail Jennings & John Rogers, 2019. "Low-Carbon Quick Wins: Integrating Short-Term Sustainable Transport Options in Climate Policy in Low-Income Countries," Sustainability, MDPI, vol. 11(16), pages 1-17, August.
    4. Ofori, Roland O., 2023. "The economic cost of fuel subsidies in Ghana," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    5. Pu, Lei & Wang, Xiuhui & Tan, Zhongfu & Wang, Huaqing & Yang, JiaCheng & Wu, Jing, 2020. "Is China's electricity price cross-subsidy policy reasonable? Comparative analysis of eastern, central, and western regions," Energy Policy, Elsevier, vol. 138(C).
    6. Bah, Muhammad Maladoh & Saari, M. Yusof, 2020. "Quantifying the impacts of energy price reform on living expenses in Saudi Arabia," Energy Policy, Elsevier, vol. 139(C).
    7. Meskoub, M., 2015. "Cash transfer as a social policy instrument or a tool of adjustment policy: from indirect subsidies (to energy and utilities) to cash subsidies in Iran, 2010-2014," ISS Working Papers - General Series 610, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    8. Bhattacharyya, Ranajoy & Ganguly, Amrita, 2017. "Cross subsidy removal in electricity pricing in India," Energy Policy, Elsevier, vol. 100(C), pages 181-190.
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