World Bank2015-04-162015-04-162013-05https://hdl.handle.net/10986/21755This paper analyzes the economic, distributional, and environmental impact that energy subsidy reductions and alternative compensating mechanisms might have in Mexico. To achieve that goal, author use a computable general equilibrium model of the Mexican economy. They make several important changes to the original model to build the energy subsidies (to gasoline, diesel, electricity and liquefied petroleum gas) into the benchmark and then do an array of simulations to see the effects of removing such subsidies. The report results for 2012, which is the initial year; 2018, which will be the end of the next administration; and 2024 and 2030, which represent the medium and long term, respectively. When doing the simulations, author look at possible compensation mechanisms and analyze the impact on the income groups that may be affected by the reduction of energy subsidies.en-USCC BY 3.0 IGOAGGREGATE LEVELAGRICULTUREAIRAIR POLLUTIONAIR QUALITYANNUAL EMISSIONBALANCEBARRELS PER DAYBASE YEARBENCHMARKBUSINESS AS USUAL SCENARIOCALCULATIONCAPITAL THEORYCARBONCARBON DIOXIDECARBON ECONOMYCARBON MONOXIDECHEMICAL CONTENTCHEMICALSCLIMATECLIMATE CHANGECLIMATE CHANGE MITIGATIONCLIMATE CHANGE POLICYCOCO2COLORSCONSTANT ELASTICITIESCONSUMER GROUPSCONSUMERSCONVERGENCEDEMAND FOR ELECTRICITYDEMAND FOR GASOLINEDEVELOPMENT STRATEGIESDIESELDISPOSABLE INCOMEDISTRIBUTIONAL IMPLICATIONSDOMESTIC PRODUCTIONDRIVINGDYNAMIC COMPUTABLE GENERAL EQUILIBRIUMDYNAMIC MODELECONOMIC ACTIVITYECONOMIC GROWTHECONOMIC THEORYECONOMIC WELFAREELASTICITIESELASTICITIES OF DEMANDELASTICITYELASTICITY OF SUBSTITUTIONELECTRICITYELECTRICITY CONSUMPTIONELECTRICITY DEMANDELECTRICITY PRODUCTIONELECTRICITY SECTORELECTRICITY TARIFFSEMISSIONEMISSION ABATEMENTEMISSIONSEMISSIONS FROM ENERGYEMISSIONS FROM ENERGY USEEMISSIONS FROM LAND USEEMISSIONS FROM LAND USE CHANGEEMISSIONS OF POLLUTANTSENERGY CONSUMERSENERGY CONSUMPTIONENERGY DEMANDENERGY EFFICIENCYENERGY GENERATIONENERGY GOODSENERGY PRICESENERGY PRICINGENERGY SAVINGSENERGY SOURCEENERGY SOURCESENERGY SUBSIDIESENERGY USEENVIRONMENTAL IMPACTSEQUILIBRIUMEQUILIBRIUM THEORYEXCHANGE RATEEXCISE TAXEXPORTSEXTERNALITIESFINANCIAL SUPPORTFORESTRYFORMAL ANALYSISFOSSILFOSSIL FUELFOSSIL FUEL USEFOSSIL FUELSFOSSIL-FUEL USEFUELFUEL PRICESFUEL SUBSIDIESFUEL USEFUELSGASOLINEGASOLINE CONSUMPTIONGASOLINE PRICESGDPGENERAL EQUILIBRIUM ANALYSISGENERAL EQUILIBRIUM MODELGLOBAL EMISSIONSGOVERNMENT DEFICITGOVERNMENT PURCHASESGOVERNMENT SUBSIDIESGREENHOUSEGREENHOUSE GASGREENHOUSE GAS EMISSIONSGREENHOUSE GASESGROSS DOMESTIC PRODUCTGROWTH RATEHOUSEHOLD CONSUMPTIONHUMAN CAPITALIMPORTSINCOMEINCOME DISTRIBUTIONINCOME GROUPSINCOME TAXESINELASTIC DEMANDINSURANCEINTERNATIONAL TRADELABOR SUPPLYLAND USELAND USE CHANGELIFE INSURANCELIQUEFIED PETROLEUM GASLOW-CARBONMARGINAL COSTMARGINAL COST OF PRODUCTIONNATURAL GASNATURAL RESOURCESNEGATIVE IMPACTSNONRENEWABLE RESOURCEOILOIL OUTPUTOIL PRICESOIL PRODUCERSOXIDESPARTICULATESPETPETROCHEMICALSPETROLEUMPETROLEUM GASPLASTICSPOLICY ANALYSISPOLICY IMPLICATIONSPOLLUTION REDUCTIONPOPULATION GROWTHPOSITIVE EFFECTSPRICE INCREASESPRICE OF OILPRICE TAKERSPRICE VOLATILITYPRODUCTION COSTSPRODUCTION FUNCTIONSPRODUCTION GOODSPROFIT MAXIMIZATIONPROPERTY TAXESPUBLIC TRANSPORTPUBLIC TRANSPORTATIONPURCHASING POWERREDUCTION IN EMISSIONSRELATIVE PRICERELATIVE PRICESREVENUE NEUTRALSAVINGSSCENARIOSSENSITIVITY ANALYSESSO2SPEEDSSTREET LIGHTINGSULFURSULFUR DIOXIDETAXTAX RATESTAX REVENUETOTAL COSTTOTAL DEMANDTOTAL EMISSIONSTRANSPORTTRANSPORT SECTORTRANSPORTATIONTRANSPORTATION COSTSTRANSPORTATION SERVICESUNEMPLOYMENTUTILITY FUNCTIONVEHICLESVOLTAGEWAGESWEALTHWorld Bank10.1596/21755