Energy subsidy reform for growth and equity in Egypt: The approach matters
Phasing out energy subsidies is high on the agenda of policymakers in several Middle Eastern and North African countries. The impact of such reform can vary widely depending on the country and policy. This paper contributes to the existing literature by examining the phasing out of energy subsidies...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | Inglés |
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Elsevier
2019
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/146871 |
| _version_ | 1855519260518907904 |
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| author | Breisinger, Clemens Mukashov, Askar Raouf, Mariam Wiebelt, Manfred |
| author_browse | Breisinger, Clemens Mukashov, Askar Raouf, Mariam Wiebelt, Manfred |
| author_facet | Breisinger, Clemens Mukashov, Askar Raouf, Mariam Wiebelt, Manfred |
| author_sort | Breisinger, Clemens |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Phasing out energy subsidies is high on the agenda of policymakers in several Middle Eastern and North African countries. The impact of such reform can vary widely depending on the country and policy. This paper contributes to the existing literature by examining the phasing out of energy subsidies in Egypt under alternative economic scenarios. In particular, we consider Egypt's short- and long-term economic adjustment under different assumptions on labor market flexibility, spending options of subsidy savings, and alternative social protection measures. Results from economy-wide model simulations suggest that energy subsidy cuts may hamper economic growth in the short term, but depending on the policy measure, will improve growth perspectives and household welfare in the longer term. Yet, findings also point to likely adverse impacts of the reform on household consumption in the short and longer run. To counteract such negative impacts, targeted social protection measures should be continued and scaled up in parallel with the phasing out of energy subsidies. |
| format | Journal Article |
| id | CGSpace146871 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1468712025-12-08T10:11:39Z Energy subsidy reform for growth and equity in Egypt: The approach matters Breisinger, Clemens Mukashov, Askar Raouf, Mariam Wiebelt, Manfred energy policies economic development social protection computable general equilibrium models subsidies poverty prices energy Phasing out energy subsidies is high on the agenda of policymakers in several Middle Eastern and North African countries. The impact of such reform can vary widely depending on the country and policy. This paper contributes to the existing literature by examining the phasing out of energy subsidies in Egypt under alternative economic scenarios. In particular, we consider Egypt's short- and long-term economic adjustment under different assumptions on labor market flexibility, spending options of subsidy savings, and alternative social protection measures. Results from economy-wide model simulations suggest that energy subsidy cuts may hamper economic growth in the short term, but depending on the policy measure, will improve growth perspectives and household welfare in the longer term. Yet, findings also point to likely adverse impacts of the reform on household consumption in the short and longer run. To counteract such negative impacts, targeted social protection measures should be continued and scaled up in parallel with the phasing out of energy subsidies. 2019-03-05 2024-06-21T09:09:12Z 2024-06-21T09:09:12Z Journal Article https://hdl.handle.net/10568/146871 en https://doi.org/10.2499/1024320681 Open Access Elsevier Breisinger, Clemens; Mukashov, Askar; Raouf, Mariam; and Wiebelt, Manfred. 2019. Energy subsidy reform for growth and equity in Egypt: The approach matters. Energy Policy 129(June 2019): 661-671. https://doi.org/10.1016/j.enpol.2019.02.059 |
| spellingShingle | energy policies economic development social protection computable general equilibrium models subsidies poverty prices energy Breisinger, Clemens Mukashov, Askar Raouf, Mariam Wiebelt, Manfred Energy subsidy reform for growth and equity in Egypt: The approach matters |
| title | Energy subsidy reform for growth and equity in Egypt: The approach matters |
| title_full | Energy subsidy reform for growth and equity in Egypt: The approach matters |
| title_fullStr | Energy subsidy reform for growth and equity in Egypt: The approach matters |
| title_full_unstemmed | Energy subsidy reform for growth and equity in Egypt: The approach matters |
| title_short | Energy subsidy reform for growth and equity in Egypt: The approach matters |
| title_sort | energy subsidy reform for growth and equity in egypt the approach matters |
| topic | energy policies economic development social protection computable general equilibrium models subsidies poverty prices energy |
| url | https://hdl.handle.net/10568/146871 |
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