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Reforming subsidies : a tool-kit for policy simulations


  • Araar, Abdelkrim
  • Verme, Paolo


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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    Cited by:

    1. repec:eee:enepol:v:108:y:2017:i:c:p:617-623 is not listed on IDEAS
    2. 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 014157, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
    3. 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.
    4. Paolo Verme & Abdelkrim Araar, 2017. "The Quest for Subsidies Reforms in the Middle East and North Africa Region," World Bank Publications, The World Bank, number 25783, June.
    5. World Bank, 2016. "Tunisia Poverty Assessment 2015," World Bank Other Operational Studies 24410, The World Bank.
    6. Araar,Abdelkrim & Choueiri,Nada & Verme,Paolo, 2015. "The quest for subsidy reforms in Libya," Policy Research Working Paper Series 7225, The World Bank.
    7. Cuesta Leiva,Jose Antonio & El Lahga,Abdelrahmen & Lara Ibarra,Gabriel, 2015. "The socioeconomic impacts of energy reform in Tunisia : a simulation approach," Policy Research Working Paper Series 7312, The World Bank.

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    Markets and Market Access; Climate Change Economics; Economic Theory&Research; Debt Markets; Access to Markets;

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