Publication:
The Quest for Subsidy Reforms in Libya

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dc.contributor.authorAraar, Abdelkrim
dc.contributor.authorChoueiri, Nada
dc.contributor.authorVerme, Paolo
dc.date.accessioned2015-04-02T18:34:15Z
dc.date.available2015-04-02T18:34:15Z
dc.date.issued2015-03
dc.description.abstractShortly before the 2011 Libyan revolution, consumers' subsidies were rapidly increased by the regime in an effort to reduce social discontent. In the aftermath of the revolution, these subsidies became important for people's subsistence, but also a very heavy burden for the state budget. Since then, the Libyan government has been confronted with the necessity of reforming subsidies in a politically and socially complex environment. This paper uses household survey data to provide a distributional analysis of food and energy subsidies and simulate the impact of subsidy reforms on household wellbeing, poverty, and the government's budget. Despite the focus on direct effects only, the results indicate that subsidy reforms would have a major impact on household welfare and government revenues. The elimination of food subsidies would reduce household expenditure by about 10 percent and double the poverty rate while saving the equivalent of about 2 percent of the government budget. The elimination of energy subsidies would have a similar effect on household welfare, but a larger effect on poverty while government savings would be almost 4 percent of the budget. The size of these effects, the weakness of market institutions, and the current political instability make subsidy reforms extremely complex in Libya. It is also clear that subsidy reforms will call for some form of compensation for the poor, a gradual rather than a big bang approach, and a product-by-product sequence of reforms rather than an all-inclusive reform.en
dc.identifierhttp://documents.worldbank.org/curated/en/2015/03/24220571/quest-subsidy-reforms-libya
dc.identifier.doi10.1596/1813-9450-7225
dc.identifier.urihttps://hdl.handle.net/10986/21673
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7225
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectSUBSTITUTION
dc.subjectPRODUCTION
dc.subjectPRICE LEVELS
dc.subjectPRICE INCREASES
dc.subjectSUBSTITUTE GOODS
dc.subjectSTOCK
dc.subjectBREAD
dc.subjectINCOME
dc.subjectCOST OF GASOLINE
dc.subjectACTIVITIES
dc.subjectENERGY EXPENDITURE
dc.subjectGENERATION
dc.subjectREAL GDP
dc.subjectELASTICITY
dc.subjectGAS PRICES
dc.subjectGASOLINE CONSUMPTION
dc.subjectPOLITICAL ECONOMY
dc.subjectGASOLINE
dc.subjectENERGY PRODUCTS
dc.subjectWELFARE
dc.subjectINCENTIVES
dc.subjectPASTA
dc.subjectTOMATOES
dc.subjectENERGY SUBSIDIES
dc.subjectGAS
dc.subjectSUBSIDY
dc.subjectPRICE
dc.subjectREAL INCOME
dc.subjectWEALTH
dc.subjectINFLATION
dc.subjectSUBSIDY REDUCTION
dc.subjectELECTRICITY CONSUMPTION
dc.subjectGASOLINE SUBSIDIES
dc.subjectRETAIL
dc.subjectSAFETY NETS
dc.subjectECONOMIC OUTLOOK
dc.subjectCENTRAL BANK
dc.subjectDISTRIBUTION OF ENERGY
dc.subjectOILS
dc.subjectOIL PRICES
dc.subjectPETROLEUM
dc.subjectSAVINGS
dc.subjectCOSTS
dc.subjectOIL
dc.subjectBRANDS
dc.subjectDATES
dc.subjectRENT
dc.subjectSURPLUS
dc.subjectPRODUCTS
dc.subjectBASE YEAR
dc.subjectOPTIONS
dc.subjectWATER
dc.subjectQUOTAS
dc.subjectDEMAND CURVES
dc.subjectMARKETS
dc.subjectDIRECT VALUE
dc.subjectINCOME LEVELS
dc.subjectPRODUCT
dc.subjectINVENTORIES
dc.subjectNATURAL RESOURCES
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectFOOD PRODUCTS
dc.subjectFUELS
dc.subjectSUBSIDIES
dc.subjectFOOD PRODUCTION
dc.subjectMARKET PRICE
dc.subjectPRICE CHANGE
dc.subjectEXPENDITURE
dc.subjectMARKET ECONOMY
dc.subjectENERGY CONSUMPTION
dc.subjectCONSUMPTION
dc.subjectSUBSTITUTE
dc.subjectTEA
dc.subjectWAGES
dc.subjectBALANCE
dc.subjectCOUPONS
dc.subjectOIL PRODUCER
dc.subjectPRICE ADJUSTMENTS
dc.subjectMARKET PRICES
dc.subjectVALUE
dc.subjectELECTRICITY
dc.subjectFREE MARKET
dc.subjectANIMAL FEED
dc.subjectDEMAND
dc.subjectLOGISTICAL SUPPORT
dc.subjectPRICE REGULATION
dc.subjectELECTRICITY GENERATION
dc.subjectPRICE CHANGES
dc.subjectEXPENDITURES
dc.subjectECONOMY
dc.subjectCONSUMERS
dc.subjectDEMAND CURVE
dc.subjectPETROLEUM GAS
dc.subjectENERGY SUBSIDY
dc.subjectCONSUMPTION OF ENERGY
dc.subjectMARKET
dc.subjectRETAIL PRICES
dc.subjectFOOD
dc.subjectENERGY PRICES
dc.subjectPRICE INCREASE
dc.subjectMARKET VALUE
dc.subjectHYDROCARBONS
dc.subjectELECTRICITY PRICES
dc.subjectFOOD SUBSIDIES
dc.subjectTRADE
dc.subjectGDP
dc.subjectGOODS
dc.subjectINTERNATIONAL MARKET
dc.subjectSUPERMARKETS
dc.subjectPRODUCTS’ MARKET
dc.subjectCRUDE OIL
dc.subjectFUEL
dc.subjectOIL RESERVES
dc.subjectGINI COEFFICIENT
dc.subjectAVAILABILITY
dc.subjectWHEAT
dc.subjectRICE
dc.subjectCONSUMER PRICES
dc.subjectTARGETED SUBSIDIES
dc.subjectVEGETABLE OILS
dc.subjectPRICE LIBERALIZATION
dc.subjectPETROLEUM PRODUCTS
dc.subjectFOOD PRICES
dc.subjectEVAPORATED MILK
dc.subjectELECTRICITY PRODUCTION
dc.subjectCASH SUBSIDIES
dc.subjectDIESEL
dc.subjectKEROSENE
dc.subjectFLOUR
dc.subjectFOOD SUBSIDY
dc.subjectPRICE SUBSIDY
dc.subjectPRICES
dc.subjectAPPROACH
dc.subjectENERGY PRICE
dc.subjectPRODUCTION COSTS
dc.subjectENERGY
dc.subjectDEVELOPMENT POLICY
dc.subjectINCOME GROUPS
dc.subjectSUGAR
dc.titleThe Quest for Subsidy Reforms in Libyaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Quest for Subsidy Reforms in Libya
okr.date.disclosure2015-03-30
okr.date.doiregistration2025-04-10T10:14:03.096036Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2015/03/24220571/quest-subsidy-reforms-libya
okr.globalpracticePoverty
okr.guid344571467980552949
okr.identifier.doi10.1596/1813-9450-7225
okr.identifier.externaldocumentum090224b082cf3949_1_0
okr.identifier.internaldocumentum24220571
okr.identifier.reportWPS7225
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/03/30/090224b082cf3949_1_0/Rendered/PDF/The0quest0for0subsidy0reforms0in0Libya.pdfen
okr.region.administrativeMiddle East and North Africa
okr.region.countryLibya
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicEnergy::Energy Production and Transportation
okr.topicEconomic Theory and Research
okr.topicFood and Beverage Industry
okr.topicTaxation and Subsidies
okr.topicEnergy::Energy and Poverty Alleviation
okr.topicMacroeconomics and Economic Growth::Consumption
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicPoverty Reduction::Equity and Development
okr.topicSocial Protections and Labor::Safety Nets and Transfers
okr.unitPoverty Global Practice Group
relation.isAuthorOfPublicationc0b4c90d-8da0-5e41-b52e-aaa2bcb4c18e
relation.isAuthorOfPublication.latestForDiscoveryc0b4c90d-8da0-5e41-b52e-aaa2bcb4c18e
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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