dc.contributor.author	Bambe, Bao We Wal
dc.contributor.author	Bou Habib, Chadi
dc.contributor.author	Marandino Peregalli, Joaquin
dc.date.accessioned	2024-10-07T15:40:26Z
dc.date.available	2024-10-07T15:40:26Z
dc.date.issued	2024-10-07
dc.description.abstract	Global oil prices have surged in recent decades, significantly hurting household living standards. In response to rising prices, many governments introduced fuel price subsidy to protect the most vulnerable populations. The literature is almost unanimous that fuel price subsidies are inefficient and generate significant socioeconomic and environmental costs. However, it is also acknowledged that subsidies often represent a significant proportion of poor households’ income, so removing them can have devastating effects. Moreover, given that fuel is a key input to economic activity, removing subsidies would alter the cost structure of specific sectors, with impacts on employment, competitiveness, and, ultimately, households’ welfare. One important question then is how policy makers can reduce the distorting effects of fuel subsidies while implementing effective measures to curb the adverse effects of price rises on the economy and poor households. This paper reviews the literature on this issue, discusses alternative policies to fuel subsidies, and provides scenarios that simulate cost and price shocks and fiscal savings for fuel subsidy reforms in Angola. Using an input-output table, the analysis estimates that gradual removal of the subsidies until full removal would result in a cumulative price increase of around 5.0 percent. The highest increases would be in fisheries and transportation (20 percent on average). Fully compensating for the price increase in the two sectors would absorb around 30 percent of the savings (around 1.0 percent of gross domestic product), notwithstanding the form and channel this compensation would take. This sector granularity is crucial to anticipate the potential negative effects of subsidy removals for various social and economic groups involved with a given sector as users or as producers.	en
dc.identifier	http://documents.worldbank.org/curated/en/099232510022425467/IDU1d4b66e6c170c6147691aaf4198a48cc7f79f
dc.identifier.doi	10.1596/1813-9450-10939
dc.identifier.uri	https://hdl.handle.net/10986/42228
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.relation.ispartofseries	Policy Research Working Paper; 10939
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by/3.0/igo/
dc.subject	FUEL SUBSIDIES
dc.subject	PRICE SUBSIDIES
dc.subject	FISCAL CONSOLIDATION
dc.subject	CASH TRANSFERS
dc.subject	ANGOLA
dc.subject	DECENT WORK AND ECONOMIC GROWTH
dc.subject	SDG 8
dc.subject	HOUSEHOLD INCOME
dc.title	Fuel Subsidy Reforms	en
dc.title.subtitle	Lessons from the Literature and Assessing the Price Shock for Different Sectors through an Input-Output Table in the Case of Angola	en
dc.type	Working Paper
dspace.entity.type	Publication
okr.crossref.title	Fuel Subsidy Reforms: Lessons from the Literature and Assessing the Price Shock for Different Sectors through an Input-Output Table in the Case of Angola
okr.date.disclosure	2024-10-07
okr.date.lastmodified	2024-10-04T00:00:00Z	en
okr.doctype	Policy Research Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/099232510022425467/IDU1d4b66e6c170c6147691aaf4198a48cc7f79f
okr.guid	099232510022425467
okr.identifier.docmid	IDU-d4b66e6c-70c6-4769-aaf4-98a48cc7f79f
okr.identifier.doi	10.1596/1813-9450-10939
okr.identifier.doi	https://doi.org/10.1596/1813-9450-10939
okr.identifier.externaldocumentum	34398496
okr.identifier.internaldocumentum	34398496
okr.identifier.report	WPS10939
okr.import.id	5412
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/099232510022425467/pdf/IDU1d4b66e6c170c6147691aaf4198a48cc7f79f.pdf	en
okr.region.administrative	Africa Western and Central (AFW)
okr.region.country	Angola
okr.topic	Macroeconomics and Economic Growth::Taxation & Subsidies
okr.topic	Macroeconomics and Economic Growth::Income
okr.topic	Energy::Fuels
okr.unit	EFI-AFR1-MTI-MacroFiscal-1 (EAEM1)
relation.isSeriesOfPublication	26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery	26e071dc-b0bf-409c-b982-df2970295c87

Publication: Fuel Subsidy Reforms: Lessons from the Literature and Assessing the Price Shock for Different Sectors through an Input-Output Table in the Case of Angola

Files

Original bundle

License bundle

Collections

Publication:
Fuel Subsidy Reforms: Lessons from the Literature and Assessing the Price Shock for Different Sectors through an Input-Output Table in the Case of Angola