New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations

Andrea Gamba

No 2015/115, IMF Working Papers from International Monetary Fund

Abstract: Jordan’s initiatives to reduce its energy dependency could have substantial macroeconomic implications, but will crucially depend on the level of international oil prices in the next decade. Significant uncertainties remain regarding the feasibility of the initiatives and their potential fiscal costs, including from contingent liabilities, could be very large. Given the lead time required for such major investments, work should start now on: (i) conducting comprehensive cost-benefits analysis of these projects; (ii) addressing the challenges arising from the taxation of natural resources; and (iii) designing a fiscal framework to anchor fiscal policies if revenue from these energy projects materializes.

Keywords: WP; authority; cost; Jordan; monopoly power; energy strategy; energy; Middle East; fiscal policy; import bill; NEPCO cost recovery; import savings; maintenance cost; fuel mix; Oil prices; Oil; Imports; Renewable energy; Tariffs (search for similar items in EconPapers)
Pages: 21
Date: 2015-05-28
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Citations: View citations in EconPapers (3)

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