Rentschler, Jun

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Economics of Development, Environment, and Climate
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Last updated: November 16, 2023
Jun Rentschler is a Senior Economist at the Office of the Chief Economist for Sustainable Development, working at the intersection of climate change and sustainable resilient development. Prior to joining The World Bank in 2012, he served as an Economic Adviser at the German Foreign Ministry. He also spent two years at the European Bank for Reconstruction and Development (EBRD) working on private sector investment projects in resource efficiency and climate change. Before that he worked on projects with Grameen Microfinance Bank in Bangladesh and the Partners for Financial Stability Program by USAID in Poland. He is a Visiting Fellow at the Payne Institute for Public Policy, following previous affiliations with the Oxford Institute for Energy Studies and the Graduate Institute for Policy Studies in Tokyo. Jun holds a PhD in Economics from University College London (UCL), specializing in development, climate, and energy.
Citations 78 Scopus

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  • Publication
    Illicit Schemes: Fossil Fuel Subsidy Reforms and the Role of Tax Evasion and Smuggling
    (World Bank, Washington, DC, 2022-01) Rentschler, Jun
    This study develops a computable general equilibrium model for Nigeria, which accounts for informality, tax evasion, and fuel smuggling. By studying the impact of fuel subsidy reform on consumption, tax incidence, and fiscal efficiency, it shows that the presence of illicit activities substantially strengthens the argument in favour of subsidy reform: First, fuel subsidy reform can shift the tax base to energy goods, which are less prone to tax evasion losses than for instance labour. Second, by reducing price differentials with neighbouring countries, subsidy reform reduces incentives for fuel smuggling. Overall, the results show that considering illicit activities reduces the welfare losses of fuel subsidy reform by at least 40 percent. In addition, fuel subsidy reductions (and by extension energy tax increases) have a strong progressive distributional impact. The findings hold under different revenue redistribution mechanisms, in particular uniform cash transfers and the reduction of pre-existing labour taxes.