Publication:
Balancing Act : Cutting Energy Subsidies While Protecting Affordability

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dc.contributor.authorLaderchi, Caterina Ruggeri
dc.contributor.authorOlivier, Anne
dc.contributor.authorTrimble, Chris
dc.date.accessioned2013-02-11T18:00:46Z
dc.date.available2013-02-11T18:00:46Z
dc.date.issued2013-01-05
dc.description.abstractThe cost of energy in Eastern Europe and Central Asia, as elsewhere, is an important policy issue, as shown by the concerns for energy affordability during the past harsh winter. Governments try to moderate the burden of energy expenditures that is experienced by households through subsidies to the energy providers, so that households pay tariffs below the cost recovery level for the energy they use. These subsidies result in significant pressures on government budgets when international prices rise. They also provide perverse incentives for the overconsumption of energy as households do not pay the true cost of energy, and therefore, have fewer incentives to save or to invest in energy efficiency. Balancing competing claims-fiscal and environmental concerns which would push for raising energy tariffs on the one hand, and affordability and political economy concerns which push for keeping tariffs artificially low on the other-is a task that policy makers in the region are increasingly unable to put off. Addressing this issue is all the more pressing as the ongoing crisis continues to add stress to government budgets, and that international energy prices remain high. While challenging, the reforms needed for this balancing act can build on much that has been learned in the last decade about improving the effectiveness of social assistance systems and increasing energy efficiency. This is the first report to assess, at the micro level for the whole region, the distributional impact of raising energy tariffs to cost recovery levels and to simulate policy options to cushion these impacts. In conclusion, this report highlights that countries face a difficult balancing act between fiscal and environmental concerns that call for raising energy tariffs to lower fiscal burdens and curb household consumption and concerns for the affordability of energy and the political economy of unpopular reforms.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/01/17181718/balancing-act-cutting-energy-subsidies-protecting-affordability
dc.identifier.doi10.1596/978-0-8213-9789-3
dc.identifier.isbn978-0-8213-9789-3
dc.identifier.urihttps://hdl.handle.net/10986/12296
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesEastern Europe and Central Asia Reports;
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectAFFORDABLE ENERGY
dc.subjectALTERNATIVE ENERGY
dc.subjectAVAILABILITY
dc.subjectBALANCE
dc.subjectCALCULATION
dc.subjectCARBON
dc.subjectCARBON ECONOMY
dc.subjectCARBON EMISSIONS
dc.subjectCLIMATE
dc.subjectCOAL
dc.subjectCOLORS
dc.subjectCONSUMER SURPLUS
dc.subjectCONSUMPTION PATTERNS
dc.subjectCOST OF ELECTRICITY
dc.subjectCOST OF ENERGY
dc.subjectCOST OF GAS
dc.subjectCOST SAVINGS
dc.subjectCOSTS OF ENERGY PRODUCTION
dc.subjectDEBT
dc.subjectDEMAND FOR ENERGY
dc.subjectDEMAND MANAGEMENT
dc.subjectDISTRIBUTION OF ENERGY
dc.subjectDISTRIBUTION OF GAS
dc.subjectDISTRICT HEATING
dc.subjectDRILLING
dc.subjectECONOMIC GROWTH
dc.subjectEFFICIENT EQUIPMENT
dc.subjectELECTRIC APPLIANCES
dc.subjectELECTRIC POWER
dc.subjectELECTRICITY
dc.subjectELECTRICITY CONSUMPTION
dc.subjectELECTRICITY GENERATION
dc.subjectELECTRICITY PRICE
dc.subjectELECTRICITY PRICES
dc.subjectELECTRICITY PRODUCTION
dc.subjectELECTRICITY SECTOR
dc.subjectELECTRICITY TARIFF
dc.subjectELECTRICITY TARIFFS
dc.subjectEMISSIONS
dc.subjectEMPIRICAL ANALYSIS
dc.subjectENERGY BILLS
dc.subjectENERGY CONSUMPTION
dc.subjectENERGY COSTS
dc.subjectENERGY DEMAND
dc.subjectENERGY EFFICIENCY
dc.subjectENERGY EFFICIENCY MEASURES
dc.subjectENERGY EXPENDITURE
dc.subjectENERGY EXPENDITURES
dc.subjectENERGY GENERATION
dc.subjectENERGY INTENSITY
dc.subjectENERGY MARKETS
dc.subjectENERGY NEEDS
dc.subjectENERGY POLICIES
dc.subjectENERGY PRICE
dc.subjectENERGY PRICES
dc.subjectENERGY PRICING
dc.subjectENERGY PRODUCTS
dc.subjectENERGY RESOURCES
dc.subjectENERGY SOURCE
dc.subjectENERGY SOURCES
dc.subjectENERGY SUPPLY
dc.subjectENERGY USAGE
dc.subjectENERGY USE
dc.subjectENERGY_EFFICIENCY
dc.subjectENVIRONMENTAL
dc.subjectENVIRONMENTAL COSTS
dc.subjectENVIRONMENTAL IMPLICATIONS
dc.subjectENVIRONMENTS
dc.subjectEXPENDITURES
dc.subjectEXPLOITATION
dc.subjectFUEL
dc.subjectGAS
dc.subjectGAS CONSUMPTION
dc.subjectGAS PRICE
dc.subjectGAS PRICES
dc.subjectGAS SECTOR
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectHEAT
dc.subjectHIGHER ENERGY PRICES
dc.subjectHOT WATER
dc.subjectHOUSEHOLD ENERGY
dc.subjectHOUSEHOLD SECTOR
dc.subjectHYDROPOWER
dc.subjectIMPROVEMENTS IN ENERGY EFFICIENCY
dc.subjectIMPROVING ENERGY EFFICIENCY
dc.subjectINCOME
dc.subjectINVESTMENT IN ENERGY EFFICIENCY
dc.subjectINVESTMENTS IN ENERGY
dc.subjectLIQUEFIED NATURAL GAS
dc.subjectLIVING STANDARDS
dc.subjectLOW-CARBON
dc.subjectMARGINAL COST
dc.subjectMARKET PRICES
dc.subjectMEMBER STATES
dc.subjectNATURAL GAS
dc.subjectNATURAL MONOPOLIES
dc.subjectNEGATIVE EXTERNALITIES
dc.subjectOIL
dc.subjectOIL MARKETS
dc.subjectOIL PRICES
dc.subjectPERVERSE INCENTIVES
dc.subjectPETROLEUM
dc.subjectPIPELINE
dc.subjectPOLICY MAKERS
dc.subjectPOLITICAL ECONOMY
dc.subjectPOWER
dc.subjectPOWER GENERATION
dc.subjectPOWER GENERATION CAPACITY
dc.subjectPOWER PLANT
dc.subjectPOWER SECTOR
dc.subjectPRESENT VALUE
dc.subjectPRICE CHANGES
dc.subjectPRICE OF ELECTRICITY
dc.subjectPRICE OF GAS
dc.subjectPRIMARY ENERGY
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPURCHASING POWER
dc.subjectQUALITY OF ENERGY
dc.subjectRENEWABLE SOURCES
dc.subjectRESIDENTIAL ENERGY
dc.subjectRETROFITTING
dc.subjectSOCIAL COSTS
dc.subjectSPACE HEATING
dc.subjectSUSTAINABLE DEVELOPMENT
dc.subjectTARIFF LEVELS
dc.subjectTARIFF STRUCTURE
dc.subjectTARIFF STRUCTURES
dc.subjectUTILITIES
dc.subjectWELFARE LOSS
dc.subjectWORLD OIL
dc.subjectWORLD OIL PRODUCTION
dc.titleBalancing Act : Cutting Energy Subsidies While Protecting Affordabilityen
dspace.entity.typePublication
okr.crosscuttingsolutionareaClimate Change
okr.crossref.titleBalancing Act
okr.date.disclosure2013-01-16
okr.date.doiregistration2025-04-15T12:04:17.791414Z
okr.doctypePublications & Research::Publication
okr.docurlhttp://documents.worldbank.org/curated/en/2013/01/17181718/balancing-act-cutting-energy-subsidies-protecting-affordability
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeEnergy and Extractives
okr.globalpracticeEnergy and Extractives
okr.identifier.doi10.1596/978-0-8213-9789-3
okr.identifier.externaldocumentum000356161_20130116163212
okr.identifier.internaldocumentum17181718
okr.identifier.report74705
okr.identifier.report76820
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/01/16/000356161_20130116163212/Rendered/PDF/NonAsciiFileName0.pdfen
okr.peerreviewAcademic Peer Review
okr.region.administrativeEurope and Central Asia
okr.sectorPublic Administration, Law, and Justice
okr.sectorEnergy and mining
okr.themeSocial protection and risk management :: Poverty strategy, analysis and monitoring
okr.themeEconomic management
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicEnergy::Energy and Environment
okr.topicEnergy::Energy Production and Transportation
okr.topicEnvironmental Economics and Policies
okr.topicEnvironment::Environment and Energy Efficiency
okr.unitMacroeconomics 3 (ECSP3)
okr.volume1 of 1
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