Struggling between resources-based and sustainable development schemes--An analysis of Egypt's recent energy policy

Paul H. Suding

Energy Policy, 2011, vol. 39, issue 8, 4431-4444

Abstract: This paper discusses Egypt's recent energy sector and policy developments against objectives and issues of the energy policy strategy adopted in 2007. It reviews energy supply and demand, pricing and subsidies as well as institutional arrangements and respective reform projects from the perspective of assessing achievements. It identifies the consequences of the policy and the long-term outlook and reports on the internal policy struggle. The policy strategy of 2007 is directed at energy security, social and industrial development. Environmental or climate objectives play no role. Energy efficiency is at best considered an instrument. The implementation of the strategy has been successful on the supply side, but not on the demand side. Price reform, refocusing subsidies and sector reform were not achieved. This has negatively affected energy efficiency and diversification, energy availability and supply security, the State budget and the sector's financial capacity. It causes rising energy import requirements and increasing risks to the current account balance. In spite of that, "old guard" and industrial establishment favour the resource-based development based on cheap energy and protract price reform, whereas another group of businessmen wants a sustainable development concept and monetize the oil and gas production to invest in Egypt's competitiveness.

Keywords: Egypt; Energy; prices; and; subsides; Sustainable; energy (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (6)

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