From Ambition to Action: Practical Insights on Energy Subsidy Reforms

doi:https://doi.org/10.1596/42275

Publication:
From Ambition to Action: Practical Insights on Energy Subsidy Reforms

dc.contributor.author	Gencer, Defne
dc.contributor.author	Arizu, Beatriz
dc.date.accessioned	2024-10-22T14:41:06Z
dc.date.available	2024-10-22T14:41:06Z
dc.date.issued	2024-10-22
dc.description.abstract	Each year, governments around the world collectively spend billions of dollars subsidizing the production and consumption of electricity, fossil fuels, or district heating. These subsidies cause economywide distortions and encourage excessive and inefficient consumption of energy. In both developing countries and advanced economies, governments often subsidize energy sources and carriers, ranging from petroleum products such as gasoline, diesel, liquefied gas or kerosene, to electricity or district heating. This practice diverts funding from more pressing priorities such as healthcare, education, the fight against hunger, or supporting renewable energy. Energy subsidies often are intended to lower energy costs for the poor, but the broad application of price subsidies ends up disproportionately benefiting richer households who consume more energy. While the case for reforming energy subsidies is clear, implementing such reforms is politically and technically challenging. These reforms require substantial efforts to develop, and success is hard to define, achieve, and maintain. Building on ESMAP’s Energy Subsidy Reform Assessment Framework (ESRAF) and drawing on recent research plus a decade of experience with country-specific technical assistance, the report consolidates those findings and presents energy subsidy reform practitioners with a series of steps that can be considered while supporting subsidy reform efforts. The steps include gaining a solid understanding of the background, effects, and socio-economic motivations for energy subsidies. The steps suggest developing several reform options, obtaining a clear understanding of the reforms’ effects on stakeholders, and building mitigation measures and benefits for society and the economy into reform design. They also advise to be strategic about timing and sequencing of reform and to communicate meaningfully and clearly with the public about the reforms. The report was preceded by a series of technical background reports covering a range of topics including macroeconomic modeling, distributional analysis, social protection, and political economy.	en
dc.identifier	http://documents.worldbank.org/curated/en/099102124150530446/P1743261ff7b89084188c21c466b7250cb9
dc.identifier.doi	10.1596/42275
dc.identifier.uri	https://hdl.handle.net/10986/42275
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.relation.ispartofseries	Energy Subsidy Reform in Action Series. ESMAP Report
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	ENERGY SUBSIDY
dc.subject	BOTTLED GAS
dc.subject	MACROECONOMIC MODELING
dc.subject	CARBON PRICING
dc.title	From Ambition to Action	en
dc.title.subtitle	Practical Insights on Energy Subsidy Reforms	en
dc.type	Report
dspace.entity.type	Publication
okr.crossref.title	From Ambition to Action: Practical Insights on Energy Subsidy Reforms
okr.date.disclosure	2024-10-22
okr.date.lastmodified	2024-10-21T00:00:00Z	en
okr.doctype	Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/099102124150530446/P1743261ff7b89084188c21c466b7250cb9
okr.guid	099102124150530446
okr.identifier.docmid	P174326-ff7b8951-7e3e-4c84-88c2-c466b7250cb9
okr.identifier.doi	https://doi.org/10.1596/42275
okr.identifier.externaldocumentum	34408991
okr.identifier.internaldocumentum	34408991
okr.identifier.report	194236
okr.import.id	5525
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/099102124150530446/pdf/P1743261ff7b89084188c21c466b7250cb9.pdf	en
okr.region.geographical	World
okr.sector	Energy Transmission and Distribution,Public Administration - Energy and Extractives,Social Protection
okr.theme	Social Safety Nets,Mitigation,Energy,Gender,Human Development and Gender,Social Protection,Social Development and Protection,Energy Policies & Reform,Environment and Natural Resource Management,Climate change,Adaptation,Energy Efficiency
okr.topic	Energy::Energy Resources Development
okr.topic	Environment::Adaptation to Climate Change
okr.unit	Infrastructure - ESMAP 2 (IEES2)
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