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Energy Subsidy Reform in Sub-Saharan Africa: Experiences and Lessons

Mumtaz Hussain () and Trevor Alleyne

No 2013/002, IMF Departmental Papers / Policy Papers from International Monetary Fund

Abstract: The reform of energy subsidies is an important but challenging issue for sub-Saharan African (SSA) countries. There is a relatively large theoretical and empirical literature on this issue. While this paper relies on that literature, too, it tailors its discussion to SSA countries to respond to the following questions: Why it is important to reduce energy subsidies? What are the difficulties involved in energy subsidy reform? How best can a subsidy reform be implemented? This paper uses various sources of information on SSA countries: quantitative assessments, surveys, and individual (but standardized) case studies.

Keywords: DPPP; DP; fuel subsidy; average cost; retail price; subsidy reform; unit price; SSA country; Energy subsidy; fixed charge; federal government; opportunity cost; Energy subsidies; Fuel prices; Tariffs; Electricity; Inflation; Africa; Sub-Saharan Africa; Middle East and Central Asia; Global; West Africa (search for similar items in EconPapers)
Pages: 125
Date: 2013-08-12
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Handle: RePEc:imf:imfdps:2013/002