Publication:
How Much Would Bangladesh Gain from the Removal of Subsidies on Electricity and Natural Gas?

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dc.contributor.authorTimilsina, Govinda R.
dc.contributor.authorPargal, Sheoli
dc.contributor.authorTsigas, Marinos
dc.contributor.authorSahin, Sebnem
dc.date.accessioned2018-12-28T15:52:13Z
dc.date.available2018-12-28T15:52:13Z
dc.date.issued2018-12
dc.description.abstractAs in many countries around the world, subsidies to energy in Bangladesh impose a significant fiscal burden, with benefits that disproportionately accrue to high-income households. Any reforms of energy subsidies should benefit the overall economy rather than those who use energy the most. Using a computable general equilibrium model, this study investigates the economywide impacts of the removal of direct subsidies in the electricity sector and indirect subsidies in natural gas in Bangladesh. The study finds that removal of energy subsidies would be beneficial to the economy and would increase gross domestic product. The magnitude of the economic impact depends on how the budgetary savings from the removal of the electricity subsidies and increased revenues due to the removal of indirect subsidies to natural gas are reallocated to the economy. Recycling the savings (or the new revenues) to fund investment would benefit the country most, followed by the case of utilizing them to fund cuts in income taxes, and finally to fund cuts in indirect taxes. Although the reallocation of budgetary savings to households through lump-sum transfers is found to be inferior to the other recycling options considered, it would be the preferred option from the distributional perspective.en
dc.identifierhttp://documents.worldbank.org/curated/en/409331545076295371/How-Much-Would-Bangladesh-Gain-from-the-Removal-of-Subsidies-on-Electricity-and-Natural-Gas
dc.identifier.doi10.1596/1813-9450-8677
dc.identifier.urihttps://hdl.handle.net/10986/31079
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8677
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectENERGY SUBSIDIES
dc.subjectNATURAL GAS PRICING
dc.subjectELASTICITY
dc.subjectCGE MODEL
dc.subjectELECTRICITY
dc.subjectENERGY PRICE REFORM
dc.titleHow Much Would Bangladesh Gain from the Removal of Subsidies on Electricity and Natural Gas?en
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleHow Much Would Bangladesh Gain from the Removal of Subsidies on Electricity and Natural Gas?
okr.date.disclosure2018-12-17
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/409331545076295371/How-Much-Would-Bangladesh-Gain-from-the-Removal-of-Subsidies-on-Electricity-and-Natural-Gas
okr.guid409331545076295371
okr.identifier.doi10.1596/1813-9450-8677
okr.identifier.externaldocumentum090224b0867aa98f_1_0
okr.identifier.internaldocumentum30702790
okr.identifier.reportWPS8677
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/409331545076295371/pdf/WPS8677.pdfen
okr.region.administrativeSouth Asia
okr.region.countryBangladesh
okr.statistics.combined2588
okr.statistics.dr409331545076295371
okr.statistics.drstats2081
okr.topicEnergy::Electric Power
okr.topicEnergy::Energy Demand
okr.topicEnergy::Energy Policies & Economics
okr.topicEnergy::Oil & Gas
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.unitDevelopment Research Group, Development Economics; and the Energy and Extractive Global Practice
relation.isAuthorOfPublication34646e59-eff5-5ff5-97f7-61093e52be39
relation.isAuthorOfPublication.latestForDiscovery34646e59-eff5-5ff5-97f7-61093e52be39
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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