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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
    as

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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
    1. Wen S. Chern & Kimiko Ishibashi & Kiyoshi Taniguchi & Yuki Tokoyama, 2002. "Analysis of Food Consumption Behavior by Japanese Households," Working Papers 02-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Kangni Kpodar & Calvin Djiofack, 2010. "The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 19(2), pages 205-236, March.
    3. Sourafel Girma & Abbi M. Kedir, 2003. "Quadratic Food Engel Curves with Measurement Error: Evidence from a Budget Survey," Discussion Papers in Economics 03/17, Department of Economics, University of Leicester.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Oil subsidies; Households; Engel curves; Semi-parametric models;

    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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