Book

Energy Pricing Policies for Inclusive Growth in Latin America and the Caribbean

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collection.link.38
https://openknowledge.worldbank.org/handle/10986/2146
collection.name.38
Directions in Development
dc.contributor.author
Beylis, Guillermo
en_US
dc.contributor.author
Cunha, Barbara
en_US
dc.date.accessioned
2017-09-11T21:14:29Z
en_US
dc.date.available
2017-09-11T21:14:29Z
en_US
dc.date.issued
2017-09-11
en_US
dc.description.abstract
Government strategies for setting energy prices are not uniform across the Latin America and the Caribbean (LAC) region—or even across fuels. Instead, they cover a full spectrum, ranging from discretionary price-fixing at one end to pure market-based approaches at the other. In between is a wide variety of other schemes such as price stabilization funds, import or export parity pricing, price smoothing through tax levels, and targeted direct price subsidies or vouchers. Governments in the LAC region, however, tend to be small as measured by government revenues as a percentage of GDP. So their limited government resources have to be used wisely and be better targeted to the poor and vulnerable. Although energy subsidies are an inefficient policy tool for protecting the welfare of the poor, energy price increases can have a big impact on these households. Energy Pricing Policies for Inclusive Growth in Latin America and the Caribbean finds that energy subsidies are highly regressive in an absolute sense—that is, the lion’s share of every dollar spent on keeping energy prices low benefits wealthier households. However, subsidies for fuels that are widely used for cooking and heating—liquefied petroleum gas (LPG), natural gas, and kerosene—as well as for electricity, can be relatively neutral or progressive, implying that lower-income households capture benefits that are proportionate to their expenditures. In other words, although poorer households receive very little from every dollar spent on energy subsidies, that small amount may represent an important share of their expenditures. It is important, then, that governments expand the coverage and depth of their social safety nets to provide relief for poor households if energy prices rise. This report also finds that aggregate price impacts and the competitiveness effects of energy price increases are moderate to small and can be smoothed out through macropolicy responses.
en_US
dc.identifier.isbn
978-1-4648-1111-1
en_US
dc.identifier.uri
http://hdl.handle.net/10986/28299
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dc.language
English
en_US
dc.language.iso
en_US
en_US
dc.publisher
Washington, DC: World Bank
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dc.relation.ispartofseries
Directions in Development;
en_US
dc.relation.ispartofseries
Directions in Development—Energy and Mining;
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dc.rights
CC BY 3.0 IGO
en_US
dc.rights.holder
World Bank
en_US
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
en_US
dc.subject
ENERGY PRICES
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dc.subject
ELECTRICITY
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dc.subject
INEQUALITY
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dc.subject
PROGRESSIVITY
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dc.subject
PRICING POLICIES
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dc.subject
ELECTRICITY TARIFFS
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dc.subject
INCIDENCE
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dc.subject
REGRESSIVITY
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dc.subject
OIL AND GAS
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dc.subject
SUBSIDIES
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dc.subject
FISCAL COSTS
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dc.subject
DISTRIBUTIONAL EFFECTS
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dc.subject
PRICE REFORM
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dc.title
Energy Pricing Policies for Inclusive Growth in Latin America and the Caribbean
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dc.type
Book
en_US
okr.date.disclosure
2017-09-11
en_US
okr.doctype
Publications & Research
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okr.doctype
Publications & Research :: Publication
en_US
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/978-1-4648-1111-1
en_US
okr.identifier.internaldocumentum
211111
en_US
okr.imported
true
en_US
okr.pdfurl
sftp://107.21.26.223:22//sftp/production/okr_delivery/3253414/9781464811111.pdf
en_US
okr.region.administrative
Latin America & Caribbean
en_US
okr.region.geographical
Caribbean
en_US
okr.region.geographical
Central America
en_US
okr.region.geographical
Latin America
en_US
okr.topic
Energy :: Electric Power
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okr.topic
Energy :: Energy Markets
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okr.topic
Energy :: Energy Policies & Economics
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okr.topic
Energy :: Energy and Poverty Alleviation
en_US
okr.topic
Macroeconomics and Economic Growth :: Taxation & Subsidies
en_US
okr.topic
Poverty Reduction :: Inequality
en_US
okr.unit
LCRCE
en_US

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