Welfare implication of reforming energy consumption subsidies

Michèle Breton and Hossein Mirzapour

Energy Policy, 2016, vol. 98, issue C, 232-240

Abstract: Reforming energy consumption subsidies, in particular for fossil fuels, has been frequently referred to as a quick-win policy to enhance environmental mitigation. In addition, the removal of such subsidies may release a sizeable portion of a country's national budget for use on more productive targets. One of the most recognized challenges of such reform is “selling” the new energy prices to citizens, particularly those with a more fragile purchasing power. Several empirical and technical studies have prescribed that the reform might be supported by a direct compensation mechanism in order to ensure feasibility.

Keywords: Energy reform; Consumption subsidies; Direct compensation; Welfare impact (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:98:y:2016:i:c:p:232-240

DOI: 10.1016/j.enpol.2016.08.031

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