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Green Growth Challenges and the Need for an Energy Reform in Mexico

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  • Carla Valdivia de Richter

    (OECD)

Abstract

As Mexico seeks to boost economic growth, pressures on its natural resources and environmental outcomes may intensify, jeopardizing the sustainability of that growth and the well-being of the population. Costs of environmental degradation were estimated at approximately 5% of GDP in 2011, primarily from the health impact of air pollution, while overexploitation of natural resources – such as water – threatens their sustainability. Subsidies and prices do not reflect environmental externalities or cost of providing natural resources, including scarcity costs. They result in poor environmental outcomes, represent a heavy burden on the government budget and, contrary to their original objective, have not efficiently tackled poverty and inequality. Such subsidies should be gradually removed. In the energy sector, reforms are needed in order to allow the state-owned oil company PEMEX to become more efficient operationally and environmentally, and to better provide fiscal revenues. Les défis de la croissance verte et la nécessité d'une réforme de l'énergie au Mexique Comme le Mexique cherche à stimuler la croissance économique, les pressions sur les ressources naturelles et les effets sur l’environnement peuvent s'intensifier, ce qui compromet la durabilité de cette croissance et le bien-être de la population. Les coûts de la dégradation de l'environnement ont été estimés à environ 5% du PIB en 2011, essentiellement dus à l'impact sanitaire de la pollution de l'air, tandis que la surexploitation des ressources naturelles - comme l'eau - menace leur pérennité. Les subventions et les prix ne reflètent pas les externalités environnementales ou le coût de l’approvisionnement de ressources naturelles, y compris les coûts de rareté. Elles se traduisent par des résultats médiocres pour l'environnement, représentent un lourd fardeau pour le budget de l'État et, contrairement à leur objectif initial, n'ont pas été très efficace contre la pauvreté et l'inégalité. Ces subventions devraient être progressivement supprimées. Dans le secteur de l'énergie, des réformes sont nécessaires afin de permettre à la compagnie pétrolière publique PEMEX de devenir plus efficace sur le plan opérationnel et de l'environnement, et à améliorer la prestation des recettes fiscales.

Suggested Citation

  • Carla Valdivia de Richter, 2013. "Green Growth Challenges and the Need for an Energy Reform in Mexico," OECD Economics Department Working Papers 1095, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1095-en
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    File URL: http://dx.doi.org/10.1787/5k3wd34pl338-en
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    1. repec:eee:enepol:v:113:y:2018:i:c:p:663-672 is not listed on IDEAS

    More about this item

    Keywords

    changement climatique; climate change; croissance verte; durabilité de l’eau; energy; green growth; Mexico; Mexique; water sustainability; énergie;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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