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
dc.contributor.author
Cunha, Barbara
dc.date.accessioned
2017-09-11T21:14:29Z
dc.date.available
2017-09-11T21:14:29Z
dc.date.issued
2017-09-11
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
dc.identifier.isbn
978-1-4648-1111-1
dc.identifier.uri
http://hdl.handle.net/10986/28299
dc.language
English
dc.language.iso
en_US
dc.publisher
Washington, DC: World Bank
dc.relation.ispartofseries
Directions in Development;
dc.relation.ispartofseries
Directions in Development—Energy and Mining;
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
ENERGY PRICES
dc.subject
ELECTRICITY
dc.subject
INEQUALITY
dc.subject
PROGRESSIVITY
dc.subject
PRICING POLICIES
dc.subject
ELECTRICITY TARIFFS
dc.subject
INCIDENCE
dc.subject
REGRESSIVITY
dc.subject
OIL AND GAS
dc.subject
SUBSIDIES
dc.subject
FISCAL COSTS
dc.subject
DISTRIBUTIONAL EFFECTS
dc.subject
PRICE REFORM
dc.title
Energy Pricing Policies for Inclusive Growth in Latin America and the Caribbean
en
dc.type
Book
en
okr.date.disclosure
2017-09-11
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Publication
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/978-1-4648-1111-1
okr.identifier.internaldocumentum
211111
okr.identifier.report
119770
okr.imported
true
okr.language.supported
en
okr.pdfurl
sftp://107.21.26.223:22//sftp/production/okr_delivery/3253414/9781464811111.pdf
en
okr.region.administrative
Latin America & Caribbean
okr.region.geographical
Caribbean
okr.region.geographical
Central America
okr.region.geographical
Latin America
okr.topic
Energy :: Electric Power
okr.topic
Energy :: Energy Markets
okr.topic
Energy :: Energy Policies & Economics
okr.topic
Energy :: Energy and Poverty Alleviation
okr.topic
Macroeconomics and Economic Growth :: Taxation & Subsidies
okr.topic
Poverty Reduction :: Inequality
okr.unit
LCRCE

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