 Environmental and welfare assessment of fossil-fuels subsidies removal: A computable general equilibrium analysis for GhanaPresley K. Wesseh, Boqiang Lin () and Philip Atsagli Energy, 2016, vol. 116, issue P1, 1172-1179 Abstract: One of the motivations for the removal of subsidies on fossil fuels is that these subsidies lead to the over-consumption of energy, and as a result, undermine environmental quality. Despite the huge opportunities that removal of subsidies on fossil fuels may bring for climate change mitigation, empirical studies for Ghana have failed to appropriately test these links. For this reason, this study employs a multi-region computable general equilibrium (CGE) model to evaluate the welfare and environmental impacts from imported refined oil subsidies removal in Ghana. The simulation experiment shows evidence of welfare losses even if environmental benefits are accounted for. Although the rate of CO2 emissions appears to increase, there is an overall 1.9% improvement in environmental quality due to the removal of fuel subsidies. The results provided in this study imply that the removal of subsidies on energy should be implemented along with policies aimed at stimulating economic activities. In addition, the study has implications for the so-called ‘green paradox’. Keywords: Fossil fuel subsidies; Climate change mitigation; Ghana (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:116:y:2016:i:p1:p:1172-1179 DOI: 10.1016/j.energy.2016.10.053 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
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