Leveraging fuel subsidy reform for transition in Yemen

Yemen is currently undergoing a major political transition, yet many economic challenges—including fuel subsidy reform—remain highly relevant. To inform the transition process with respect to a potential subsidy reform, we use a dynamic computable general equilibrium and microsimulation model for Ye...

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Autores principales: Breisinger, Clemens, Engelke, Wilfried, Ecker, Olivier
Formato: Journal Article
Lenguaje:Inglés
Publicado: MDPI 2012
Materias:
Acceso en línea:https://hdl.handle.net/10568/153238
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author Breisinger, Clemens
Engelke, Wilfried
Ecker, Olivier
author_browse Breisinger, Clemens
Ecker, Olivier
Engelke, Wilfried
author_facet Breisinger, Clemens
Engelke, Wilfried
Ecker, Olivier
author_sort Breisinger, Clemens
collection Repository of Agricultural Research Outputs (CGSpace)
description Yemen is currently undergoing a major political transition, yet many economic challenges—including fuel subsidy reform—remain highly relevant. To inform the transition process with respect to a potential subsidy reform, we use a dynamic computable general equilibrium and microsimulation model for Yemen; we show that overall growth effects of subsidy reduction are positive in general, but poverty can increase or decrease depending on reform design. A promising strategy for a successful reform combines fuel subsidy reduction with direct income transfers to the poorest one-third of households during reform, and productivity-enhancing investment in infrastructure, plus fiscal consolidation. Public investments should be used for integrating economic spaces and restructuring of agricultural, industrial and service value chains in order to create a framework that encourages private-sector-led and job-creating growth.
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spelling CGSpace1532382025-12-08T10:29:22Z Leveraging fuel subsidy reform for transition in Yemen Breisinger, Clemens Engelke, Wilfried Ecker, Olivier development poverty fuels subsidies reforms Yemen is currently undergoing a major political transition, yet many economic challenges—including fuel subsidy reform—remain highly relevant. To inform the transition process with respect to a potential subsidy reform, we use a dynamic computable general equilibrium and microsimulation model for Yemen; we show that overall growth effects of subsidy reduction are positive in general, but poverty can increase or decrease depending on reform design. A promising strategy for a successful reform combines fuel subsidy reduction with direct income transfers to the poorest one-third of households during reform, and productivity-enhancing investment in infrastructure, plus fiscal consolidation. Public investments should be used for integrating economic spaces and restructuring of agricultural, industrial and service value chains in order to create a framework that encourages private-sector-led and job-creating growth. 2012 2024-10-01T13:55:50Z 2024-10-01T13:55:50Z Journal Article https://hdl.handle.net/10568/153238 en Open Access MDPI Breisinger, Clemens; Engelke, Wilfried; Ecker, Olivier 2012. Leveraging fuel subsidy reform for transition in Yemen. Sustainability 4(11): 2862-2887
spellingShingle development
poverty
fuels
subsidies
reforms
Breisinger, Clemens
Engelke, Wilfried
Ecker, Olivier
Leveraging fuel subsidy reform for transition in Yemen
title Leveraging fuel subsidy reform for transition in Yemen
title_full Leveraging fuel subsidy reform for transition in Yemen
title_fullStr Leveraging fuel subsidy reform for transition in Yemen
title_full_unstemmed Leveraging fuel subsidy reform for transition in Yemen
title_short Leveraging fuel subsidy reform for transition in Yemen
title_sort leveraging fuel subsidy reform for transition in yemen
topic development
poverty
fuels
subsidies
reforms
url https://hdl.handle.net/10568/153238
work_keys_str_mv AT breisingerclemens leveragingfuelsubsidyreformfortransitioninyemen
AT engelkewilfried leveragingfuelsubsidyreformfortransitioninyemen
AT eckerolivier leveragingfuelsubsidyreformfortransitioninyemen