Publication:
The Political Economy of Energy Subsidy Reform

dc.contributor.authorInchauste, Gabriela
dc.contributor.authorVictor, David G.
dc.contributor.editorInchauste, Gabriela
dc.contributor.editorVictor, David G.
dc.contributor.otherAddo, Sheila
dc.contributor.otherBazilian, Morgan
dc.contributor.otherBeaton, Christopher
dc.contributor.otherGallina, Andrea
dc.contributor.otherMansur, Yusuf
dc.contributor.otherOguah, Sanuel
dc.contributor.otherSánchez, Miguel Eduardo
dc.contributor.otherSerajuddin, Umar
dc.contributor.otherWai-Poi, Matthew
dc.date.accessioned2017-03-07T20:26:32Z
dc.date.available2017-03-07T20:26:32Z
dc.date.issued2017-03-07
dc.description.abstractThis book proposes a simple framework for understanding the political economy of subsidy reform and applies it to four in-depth country studies covering more than 30 distinct episodes of reform. Five key lessons emerge. First, energy subsidies often follow a life cycle, beginning as a way to stabilize prices and reduce exposure to price volatility for low-income consumers. However, as they grow in size and political power, they become entrenched. Second, subsidy reform strategies vary because the underlying political economy problems vary. When benefits are concentrated, satisfying or isolating) interest groups with alternative policies is an important condition for effective reform. When benefits are diffuse, it can be much harder to identify and manage the political coalition needed for reform. Third, governments vary in their administrative and political capacities to implement difficult energy subsidy reforms. Fourth, improvements in social protection systems are often critical to the success of reforms because they make it possible to target assistance to those most in need. Finally, the most interesting cases involve governments that take a strategic approach to the challenges of political economy. In these settings, fixing energy subsidies is central to the governments’ missions of retaining political power and reorganizing how the government delivers benefits to the population. These cases are examples of “reform engineering,” where governments actively seek to create the capacity to implement alternative policies, depoliticize tariffs, and build credibility around alternative policies. The most successful reforms involve active efforts by policy leaders to identify the political forces supporting energy subsidies and redirect or inoculate them.en
dc.identifier.doi10.1596/978-1-4648-1007-7
dc.identifier.isbn978-1-4648-1007-7
dc.identifier.urihttps://hdl.handle.net/10986/26216
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesDirections in Development--Public Sector Governance;
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectSUBSIDY
dc.subjectREFORM
dc.subjectELECTRICITY
dc.subjectLPG
dc.subjectPOLITICAL ECONOMY
dc.subjectDISTRIBUTIONAL IMPACT
dc.subjectGASOLINE
dc.subjectENERGY
dc.subjectMITIGATING MEASURES
dc.subjectDIESEL
dc.subjectLIQUEFIED PETROLEUM GAS
dc.titleThe Political Economy of Energy Subsidy Reformen
dc.typeBooken
dc.typeLivrefr
dc.typeLibroes
dspace.entity.typePublication
okr.crossref.titleThe Political Economy of Energy Subsidy Reform
okr.date.disclosure2017-03-07
okr.date.doiregistration2025-04-15T11:05:53.313208Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Publication
okr.identifier.doi10.1596/978-1-4648-1007-7
okr.identifier.doihttps://doi.org/10.1596/978-1-4648-1007-7
okr.identifier.internaldocumentum211007
okr.identifier.report113262
okr.importedtrue
okr.language.supporteden
okr.pdfurlsftp://107.21.26.223:22//sftp/production/okr_delivery/2668621/9781464810077.pdfen
okr.region.administrativeAfrica
okr.region.administrativeEast Asia and Pacific
okr.region.administrativeLatin America & Caribbean
okr.region.administrativeMiddle East and North Africa
okr.region.countryDominican Republic
okr.region.countryGhana
okr.region.countryIndonesia
okr.region.countryJordan
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicEnergy::Energy Policies & Economics
okr.topicMacroeconomics and Economic Growth::Political Economy
okr.topicGovernance::National Governance
okr.topicPoverty Reduction::Services & Transfers to Poor
okr.unitGPVGE
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