Article

Why Do Governments Subsidize Gasoline Consumption? An Empirical Analysis of Global Gasoline Prices, 2002–2009

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Abstract

Governments spend hundreds of billions of dollars annually to subsidize the consumption of fossil fuels without understanding the environmental and economic problems this practice creates. To shed light on these problems, we examine the case of gasoline subsidies using data on gasoline prices in 137 countries for the years 2002–2009. It is useful to study gasoline pricing because gasoline is the most important transportation fuel, and there are data for many countries for the time period of investigation. We find that major oil producers subsidize gasoline consumption by artificially reducing prices; countries with weak institutional capacity also seem to subsidize gasoline, but the effects are weaker. These results suggest that policy interventions to improve institutional capacity could help developing countries in particular reduce their fossil fuel subsidies.

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... A second strand of research seeks to do just this by explaining the existence and level of fossil fuel subsidies through comparative and quantitative studies (Overland 2010;Cheon et al. 2013Cheon et al. , 2015Benes et al. 2015;Kim and Urpelainen 2015;Inchauste and Victor 2016;Ross et al. 2017). These existing studies tend to focus on consumption subsidiesparticularly to petroleum products (e.g. ...
... petrol, kerosene) in developing countriesand pay less attention to other kinds of subsidies. While the quantitative studies have focused on the level of fossil fuel subsidies as the dependent variable (Cheon et al. 2013Kim and Urpelainen 2015), the comparative case studies have focused on a limited set of country cases that differ on the dependent variable, namely successful reform (Overland 2010;Inchauste and Victor 2016). ...
... When it comes to more structural factors, scholars have focused on the role of fossil fuel reserves and global fossil fuel prices in influencing the level of fossil fuel subsidies and the possibilities for reform (Overland 2010;Benes et al. 2015;Kojima and Koplow 2015;Rentschler and Bazilian 2017b). Other structural factors include institutional or governance capacity (Commander 2012;Cheon et al. 2013), the kind of state providing the subsidies (including how decentralised political power is; see Lockwood 2015), whether the political system is democratic or authoritarian (Overland 2010;Kim and Urpelainen 2015) and path dependency, which can make it difficult to remove fossil fuel subsidies once they are in place (Victor 2009;Lockwood 2015). The findings from this body of literature indicate that countries with weak institutional capacity, authoritarian rule, and significant fossil fuel reserves are more likely to subsidise fossil fuels. ...
Chapter
The Politics of Fossil Fuel Subsidies and their Reform - edited by Jakob Skovgaard August 2018
... First, resistance to fuel subsidy reform manifests in popular opposition and the fear of popular opposition (Victor 2009;Overland 2010;Cheon et al. 2013). Subsidies deliver tangible, observable results through lower fuel prices for consumers. ...
... Second, fuel subsidy reform is made difficult due to vested interests (Victor 2009;Cheon et al. 2013). The costs of fuel subsidies tend to be distributed across society, while the benefit accrues to particular groups. ...
... Fuel subsidy reforms would raise production costs, threatening the competitiveness of these industries, thus incentivizing companies to lobby against reform efforts. This is connected to the third barrier to reforms: a lack of institutional capacity (Victor 2009;Cheon et al. 2013Cheon et al. , 2015. Governments lacking institutional capacity-in this case, the capacity to implement social and economic policies effectively-threaten the prospects for successful fuel subsidy reform. ...
Article
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This article investigates how international organizations can support fuel subsidy reform. Departing from earlier studies, we focus on the ability of international organizations to assist national governments directly in the enactment and implementation of national reforms. While international organizations lack the capacity to directly enforce policy or force countries to abolish subsidies, they can increase the cost of reform reversal by governments that have a preference for reform but worry about the credibility and durability of their reforms. Moreover, international organizations can support learning from peers. In practice, governments interested in subsidy reform can announce a public commitment and submit progress reports to peer review by other countries under the auspices of an international organization. We characterize the institutional design of international organizations for success, discuss the role of the civil society in the process, and offer short illustrations from recent efforts by international organizations to promote fuel subsidy reform.
... Subsidies can become very difficult to reform and are politically sensitive. One of the most common barriers identified by literature is public opposition (Victor, 2009;Overland, 2010;Cheon, Urpelainen, & Lackner, 2013). Other barriers identified include vested interests and lack of institutional capacity (Victor, 2009;Cheon, Urpelainen, & Lackner, 2013). ...
... One of the most common barriers identified by literature is public opposition (Victor, 2009;Overland, 2010;Cheon, Urpelainen, & Lackner, 2013). Other barriers identified include vested interests and lack of institutional capacity (Victor, 2009;Cheon, Urpelainen, & Lackner, 2013). These barriers, as well as sharp international price increases, have forced countries to go back on subsidy reform. ...
... For countries like Nigeria with low institutional capacity, fossil fuel subsidies represent a more straightforward solution as they do not require a strong administrative capacity and are politically appealing. As the local institutional capacity increases, the ability to implement more efficient and sophisticated policy instruments increases (Victor, 2009;Cheon, Lackner, & Urpelainen, 2015;Cheon, Urpelainen, & Lackner, 2013). Olowu (2001) attributes the weak institutional capacity in Nigeria to the politicization and the undermining of the civil service. ...
Thesis
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One of the indicators of the Sustainable Development Goal 12 (“Ensure sustainable consumption and production patterns”) is the phasing out of fossil fuel subsidies “in a manner that protects the poor and the affected communities” (UN, 2019). Fossil fuel subsidies exacerbate a wide range of adverse economic, environmental, and social conditions such as fiscal imbalances, petroleum product smuggling, greenhouse gas emissions, and social inequities. These subsidies also reduce resources that governments could invest to meet sustainable development goals and other development objectives. Attempts to reform fossil fuel subsidies are often faced with strong resistance for a variety of reasons, including the associated inflationary impacts and price shocks, poor energy security, lack of viable alternatives, and negative welfare impacts on some of society’s most vulnerable. The resistance to fossil fuel subsidy reform in Nigeria accounts for the persistent underinvestment in critical infrastructure and social development. This dissertation analyses the reasons for fossil fuel subsidy reform inertia in Nigeria by studying the history of subsidy reform, and the factors that influence it. It asserts that the energy system’s diversification to include sustainable technology options would reduce dependence on fossil fuel sources, increase energy security, and potentially reduce the political barriers to fossil fuel subsidy reform. A scenario analysis of renewable energy penetration was done based on Nigeria’s sustainable energy for all action agenda (SE4ALL-AA) to validate this assertion. The study utilized the Long-range Energy Alternative Planning (LEAP) tool to project the sustainable development benefits of clean energy diffusion. The study examined the opportunities and challenges of renewable energy development and reviewed case studies to derive policy recommendations.
... A mix of domestic political, economic, and social factors underlies fossil fuel subsidies' persistence, as well as chances of their reform (Skovgaard & van Asselt, 2018a). Existing studies on the politics of fossil fuel subsidies and their reform have provided insights into how fossil fuel subsidies are tied up with the domestic political economy of fossil fuel production and consumption (Cheon, Lackner, & Urpelainen, 2015;Cheon, Urpelainen, & Lackner, 2013;Inchauste & Victor, 2017;Overland, 2010;Victor, 2009), but also international norms and institutions can promote subsidy reform (Skovgaard, 2017;Smith & Urpelainen, 2017;Van de Graaf & Blondeel, 2018; van Asselt, 2017). ...
... To better appreciate the opportunities and barriers for reform, it is key to understand the reasons why fossil fuel subsidies are maintained. An emerging body of scholarship on the domestic political economy of fossil fuel subsidy has shed light on the drivers for subsidies and barriers to reform (Benes, Cheon, Urpelainen, & Yang, 2015;Cheon et al., 2013Cheon et al., , 2015Inchauste & Victor, 2017;Kim & Urpelainen, 2015;Lockwood, 2015;Overland, 2010;Ross, Hazlett, & Mahdavi, 2017;Rentschler, 2018). These studies have tended to concentrate on consumption subsidies, particularly to petroleum products (e.g., petrol, kerosene) in developing countries. ...
... In terms of macroeconomic factors, scholars have pointed specifically to the role of fossil fuel reserves (Overland, 2010) and global fossil fuel prices (Benes et al., 2015;Rentschler & Bazilian, 2017b). Other structural factors include institutional or governance capacity (Cheon et al., 2013;Commander, 2012), the kind of state providing the subsidies (including how decentralized political power is; see Lockwood, 2015), whether it is democratic or authoritarian (Kim & Urpelainen, 2015;Overland, 2010) and path dependency, which can make it difficult to remove fossil fuel subsidies once in place (Lockwood, 2015;Victor, 2009). ...
Article
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The production and consumption of fossil fuels need to decrease significantly to meet the 2015 Paris Agreement's ambitious climate change goals. However, fossil fuels continue to receive significant amounts of government support. Although reforming fossil fuel subsidies can yield climate change mitigation benefits, the specific international and domestic political context and political economy of fossil fuel subsidies means that such reform is not straightforward and may not be aligned with traditional climate politics. Our objective in this review article is to examine the implications of the politics of fossil fuel subsidies and their reform for climate change mitigation. The first step of examining these implications is to review existing studies on the size and impacts of global fossil fuel subsidies. Subsequently, we discuss the international politics of fossil fuel subsidies, including the emerging norm of fossil fuel subsidy reform, and the respective roles played by the international climate regime and several international economic institutions. Finally, we examine why fossil fuel subsidies are introduced and maintained at the domestic level, how fossil fuel subsidy reform has functioned in practice, and whether and how such reform could be conceived as an instrument for climate policy. This article is categorized under: • The Carbon Economy and Climate Mitigation > Policies, Instruments, Lifestyles, Behavior • Policy and Governance > Private Governance of Climate Change Abstract Fossil fuel subsidies support the production of as well as the consumption of fossil fuels.
... This is because studies analyzing the pass-through to domestic fuel prices do not systematically look at pass-through across countries and time -typically because of a lack of (consistent crosssectional and long-term) data -and are instead selective in their analysis, focusing primarily on developed countries (see for instance Angelopoulou and Gibson, 2010;Bello and Contín-Pilart, 2012). Moreover, most studies tend to look at the level of fuel prices across countries rather than changes in prices over time, thereby missing important factors affecting the shortterm dynamic of fuel prices (see Cheon et al., 2013 andBlair et al., 2017). ...
... Consistent with Hammar et al. (2004), van Beers and Strand (2013) find that high gasoline consumption levels lead to more gasoline subsidies (hence lower pass-through), thereby supporting the theory of pressure groups. The complexity of the political economy is the most challenging barrier to reforming subsidies (Cheon et al., 2013 andRentschler and Bazilian, 2016;Fattouh, 2012 and. According to Fattouh and El-Katiri (2012), pass-through is low when there is a lack of institutions able to redistribute wealth (through other means) or achieve other social goals. ...
... According to Fattouh and El-Katiri (2012), pass-through is low when there is a lack of institutions able to redistribute wealth (through other means) or achieve other social goals. This view is echoed by Cheon et al. (2013) who stress that consumption subsidies are a common political tool for luring voters in countries with weak institutional capacity and poor governance (see also Ebeke and Lonkeng Ngouana (2015) who provide evidence of a crowding-out effect of fuel subsidies on social expenditure). Against this backdrop, policymakers have little incentive to pursue sound economic policies. ...
Article
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While many developing countries limit the international fuel price pass through to domestic fuel prices, others do not. Against this backdrop, we examine the factors that determine whether governments allow international fuel price changes to be passed through to domestic prices in developing countries using a dataset spanning 109 developing countries from 2000 to 2014. The paper finds that the pass-through is higher when changes in international prices are moderate and less volatile. In addition, the flexibility of the pricing mechanism allows for higher pass-through while exchange rate depreciation and lower retail fuel prices in neighboring countries inhibit it. The econometric results also underscore the fact that countries with inflation tend to experience lower pass-through, whereas those with high public debt exhibit larger pass-through. Finally, no evidence is found that political variables or environmental policies matter with regard to fuel price dynamics in the short-term. These findings, which are consistent across fuel products (gasoline, diesel and kerosene), allow us to draw important policy lessons for fuel subsidy reforms.
... Political economy analysis of fossil fuel subsidies drew our attention to the reasons why governments raise energy prices sharply, and to how governments respond to protests about energy price rises or scarcity. Governments often raise fuel prices sharply to cut subsidies as part of public spending reforms (Rentschler and Bazilian 2017b;Lockwood 2015 usual object of protests, partly because they are comparatively energy-rich (Cheon et al. 2013;Victor 2009). In energy-rich countries where state capacity to distribute resources is weak, consumer fuel subsidies tend to be common and resilient to reform efforts (Inchauste and Victor 2017). ...
... Authoritarian regimes are more likely than democracies to offer fuel subsidies (Kim and Urpelainen 2016: 552), which are believed to quell or pre-empt social unrest (Victor 2009). Energy-rich countries are particularly likely to have the kind of consumer price subsidies that fuel price protests target (Cheon et al. 2013;Victor 2009); weak state capacity to distribute resources ensures that consumer fuel subsidies are common and resilient to reform efforts (Inchauste and Victor 2017). Finally, authoritarian and weakly dominant political regimes are particularly likely to rely on such subsidy regimes as a source of popular legitimacy (Andresen 2008;Rosser 2006). ...
Article
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Energy protests are becoming increasingly common and significant around the world. While in the global North concerns tend to centre around climate issues, in the global South the concerns are more often with affordable energy. Both types of protests, however, have one issue in common: the undemocratic nature of energy policymaking. This paper draws together findings from research conducted in three countries, Mozambique, Nigeria, and Pakistan to ask how and under which conditions do struggles over energy access in fragile and conflict affected settings empower the powerless to hold public authorities to account? In exploring this theme, the study examines what factors support protests developing into significant episodes of contention within fragile settings, and whether these energy struggles promote citizen empowerment and institutional accountability.
... Während der Industrialisierung haben sich Wirtschaft und Energiesysteme unter wechselseitiger Beeinflussung stark gewandelt (Sieferle 2010;Sieferle et al., 2006). (Cheon et al., 2013;G-20 Leaders, 2009;McLure, 2013). Organisationen mit heterogenen Zielen, Eigentümerstrukturen und Geschäftsmodellen haben sehr spezifische Herangehensweisen in Bezug auf die Entwicklung und Umsetzung von Anpassungs-und Emissionsminderungsstrategien. ...
... In reality, however, lump-sum compensation mechanisms may be unavailable to policy makers, such that they resort to less efficient policies to provide benefits to special interest groups (Dixit et al., 1997). Indeed, oil rich countries are found to provide higher fossil fuel subsidies (Cheon et al., 2013), and it has been argued that these subsidies might be an attractive device to distribute natural resource rents, as they are "easier to observe, easier to commit to, easier to deliver, or better targeted at core groups, than other public goods or favors offered by rulers" (Strand, 2013). This perspective is corroborated by several interview partners, who emphasized that citizens feel a strong sense of entitlement to receive a share of their country's resource wealth (see Segal, 2012;Friedrichs and Inderwildi, 2013). ...
Article
Long-term credibility is a central pillar of climate policy. This paper assesses whether Ecuador's recently adopted climate targets, policies to decarbonize the power sector, and measures to reduce deforestation constitute a credible basis for a transformation towards a low-carbon economy. Based on the literature on the design of credible climate policy and expert interviews, we argue that even though Ecuador's existing policies may reduce emissions in the short term, they do not yet constitute an entry point for a long-term strategy of economic transformation. We then outline politically and institutionally feasible mitigation measures, which we evaluate from a dynamic policy sequencing perspective according to their potential to prepare the ground for more stringent measures to reduce emission in the future. These measures include inter alia reform of driving restrictions, public transport, vehicle efficiency standards, support for electric cars, and results-based payments to reduce land use emission. Such reforms will need to be phased in gradually and embedded in a broad fiscal reform package. To counter potential adverse distributional effects of higher energy prices, low-income groups could be protected by lowering other taxes, scaling up investment in education, and block-pricing schemes. Furthermore, increased participation of key stakeholders would likely reduce public opposition against energy- and climate-related policies, such as fossil fuel subsidy reform.
... Among scholars, there is some disagreement about the relative weight of economic and institutional factors in increasing the likelihood of reform. Cheon et al. (2013), for example, find that authoritarianism, poor institutional capacity, and Organization of the Petroleum Exporting Countries (OPEC) membership are significant correlates for higher gasoline subsidies in their longitudinal analysis. Such conclusions align with case studies that evaluate the likelihood of reform as a function of the size of petroleum rents, the degree of policy transparency, and the power of special interests within countries (Inchauste & Victor, 2017;Koplow, 2014;Lockwood, 2015). ...
Article
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Fossil fuel subsidies are a market distortion commonly identified as an obstacle to decar-bonization. Yet due to trenchant political economic risks, reform attempts can be fraught for governments. Despite these concerns, an institutionally and economically diverse group of states included references to fossil fuel subsidy reform (FFSR) in their Intended Nationally Determined Contributions (INDCs) under the Paris Agreement. What conditions might explain why some states reference politically risky reforms within treaty commitments , while most others would not? We argue that the Article 4 process under the Paris Agreement creates a "credibility dilemma" for states-articulating ambitious emissions reduction targets while also defining national climate plans engenders a need to seek out appropriate policy ideas that can justify overarching goals to international audiences. Inso-much as particular norms are institutionalized and made salient in international politics, a window of opportunity is opened: issue advocates can "activate" norms by demonstrating how related policies can make commitments credible. Using mixed methods, we find support for this argument. We identify contextual factors advancing FFSR in the lead-up to the Paris Agreement, including norm institutionalization in regimes and international organization programs as well as salience-boosting climate diplomacy. Further, we find correspondences between countries targeted by transnational policy advocates and FFSR references in INDCs, building on the momentum in international politics more generally. Though drafting INDCs and NDCs is a government-owned process, the results suggest that understanding their content requires examining international norms alongside domestic circumstances.
... A growing body of literature is seeking to identify the role of different political, economic and social factors in fossil fuel subsidies and their reform (Victor 2009;Cheon et al. 2013;Lockwood 2015). Although studies of individual fossil fuel subsidy reforms point to the role of international economic institutions as one factor among many (Beaton and Lontoh 2010;Lockwood 2015), there is no cross-country study of the influence of these institutions. ...
Chapter
The Politics of Fossil Fuel Subsidies and their Reform - edited by Jakob Skovgaard August 2018
... Although comparative and large-n studies exist (e.g. Cheon et al. 2013;Ross et al. 2017), these analyses rarely compare the influence of a set of political factors across cases (but see Inchauste and Victor 2016). The focused comparison of different cases could uncover whether there are political factors that either promote or hinder reform that could apply across (a subset of) countries and therefore form a basis for more informed recommendations on how to carry out such reforms. ...
Chapter
The Politics of Fossil Fuel Subsidies and their Reform - edited by Jakob Skovgaard August 2018
... Fossil fuel subsidies are typically adopted in countries where their implementation is relatively cheap compared with other means of influencing household consumption. For example, major oil producers are frequent subsidizers of domestic consumption (Cheon, Urpelainen, & Lackner, 2013). In these countries, the public often expects to benefit from their country's oil wealth, and the state has a strong incentive to provide goods and services that make it appear that everyone is benefitting-even if some are actually benefitting more-either because they are made available to all citizens or because they have a high degree of visibility. ...
Article
This article examines the role played by local governments in shaping resistance to reforming fiscally and environmentally disastrous fuel subsidies. Shifting from universal-access social programs, like fuel subsidies, to targeted programs requires vesting authority with local politicians and bureaucrats, whom the state relies on to identify poor households and to deliver benefits. Where local governments are corrupt, citizens find promises to replace fuel subsidies with targeted spending less credible and resistance to reform is higher. Using household survey data from Indonesia, this article finds that corruption in the implementation of targeted transfer programs increases resistance to fuel subsidy reform among the poor citizens who consume the least fuel and who stand to benefit the most from targeted programs. Findings suggest that improving capacity within subnational governments to deliver social programs is important in developing public support for reform.
... These findings are aligned with the hypothesis of Eller et al. (2011) and Hartley et al. (2012) that governments, who are the principals in their relation with an NOC management, are more likely to redistribute income through subsidized domestic fuel prices. Cheon et al. (2013) note that major oil producing countries with weak institutional capacities tend to subsidize domestic fuel prices. ...
Article
National oil companies (NOCs) control international oil markets. Nevertheless, by the end of the 2000s, their share of the industry's total revenues was only 35% while controlling more than 70% of the oil reserves and 65% of the gas reserves. Conventional financial theory prescribes that the proper management of an enterprise should seek the maximization of the NOCs' profits. However, maximization of profits is not their only objective. Their targets often include non-commercial objectives, such as domestic fuel subsidies and employment. This paper develops a model to assess the impact of domestic fuel subsidies and employment on NOCs’ performance, which clarifies the trade-offs among non-commercial objectives and NOCs' market value, production, and reinvestment. The model is applied and calibrated to the Colombian NOC to find the financial and operative effects of these non-commercial objectives for different scenarios.
... In the developing countries, PSC is controlled by governments, which spend millions of dollars on refined petroleum products such as gasoline, diesel, etc. In these countries, large volume of subsidies causes artificial low prices and the economic and financial problems, this in turn causes fading out of optimization of economic consumption and market competitions (Cheon et al., 2013). Considering the economic and financial problems, countries take corrective measures such as gradual reduction of subsidies to ultimately complete elimination and inclusion of private sector in the petroleum supply chain. ...
Article
Petroleum Supply Chain is one of the most important and sophisticated managing missions in both developing and developed countries. Nowadays, environmental pollution is another critical factor in designing the petroleum supply chain. This importance encourages the governments to minimize the amount of environmental pollution and maximize their obtained profit simultaneously, by enacting required legislations on the transportation modes and the refineries. Considering maximizing the job creation and each stakeholder's profit, and minimizing the emission of CO 2 and other greenhouse gases at the same time is called Sustainable Petroleum Supply Chain which has been paid little attention despite its significance. Therefore, the modelling of petroleum supply chain considering sustainability and pricing issues is investigated for the first time in this work and a sustainable competitive petroleum supply chain (SCPSC) model is developed to minimize pollution while maximizing the profits and job creation. This problem is a two level model. The first level in SCPSC is the competition between the supply chains of the government and the private sectors, which is modelled by the game theory approach including Nash and Stackelberg equilibria. The optimal price and demand for each supply chain determined in the first level are considered as the second level parameters. In the second level, the optimal values of the decisions in designing the petroleum supply chain will be obtained by solving Mixed Integer Linear Programming (MILP) under the mentioned three objective functions. Finally, the proposed model is applied to a real world case in the national Iranian oil company (NIOC). Based on the results of the Stackelberg equilibrium, the government profits increase by 11.12% while that of the private sector decreases by 25.4 and 28.11%. Increasing in the government profit is due to increased demand provided by government. The results show that the whole profit of the petroleum supply chain in Nash equilibrium is 9.8% more than that in the Stackelberg equilibrium.
... The growing body of the literature on fossil fuel subsidies and their reform has predominantly focused on domestic factors (Victor 2009;Bazilian and Onyeji 2012;Cheon et al. 2013). The issue of international economic institutions in fossil fuel subsidy reform has been overlooked-except for treating them as one factor among many causing domestic fossil fuel subsidy reform (Beaton and Lontoh 2010). ...
Article
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Fossil fuel subsidy reform has in recent years been addressed by international economic organizations including the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD). The two organizations have differed significantly in how they define fossil fuel subsidies. The IMF’s definition constitutes a radical break with previous definitions by including environmental externalities, while the OECD’s is more conventional. The article explores the factors that explain why these international economic organizations have approached fossil fuel subsidies so differently. The exact definition of fossil fuel subsidies is contested. Furthermore, fossil fuels subsidies can be framed in ways that emphasize, respectively, their macroeconomic, fiscal, environmental, and distributive consequences. The article finds that institutional interaction lifted OECD involvement in fossil fuel subsidies to a new level, whereas the impetus to address fossil fuel subsidies within the IMF came largely from the IMF staff. In both cases, the organization’s bureaucracy constituted the most important factor shaping how the organizations addressed such subsidies and hence the main reason why they differ in how they approach fossil fuel subsidies.
... Comin and Hobijn (2004) note that democracies seem more successful in maintaining the property rights necessary for investment and in deterring pressure groups from preventing the adoption of new technologies. Similarly, Fredriksson and Neumayer (2013) find that a country's level of democracy capital has significant impact on its climate change policies, while Cheon et al. (2013) find that countries with weaker institutions are found to be more prone to providing gasoline subsidies. All control variables, with the exception of the centrally planned economy dummy are demeaned, so that the intercept term in the regression can be interpreted as the mean time effect at the sample mean for a non-centrally planned economy. ...
Article
We examine the key factors driving change in energy use globally over the past four decades. Our econometric approach is robust to the presence of unit roots, unobserved time effects, and spatial effects. We test for both strong decoupling where economic growth has less effect on energy use as income increases, and weak decoupling where energy use declines over time in richer countries, ceteris paribus. Our key findings are that the growth of per capita energy use has been primarily driven by economic growth, convergence in energy intensity and weak decoupling. There is no sign of strong decoupling.
... Support does not have to be limited to financial flows, but could also be aimed at enhancing the technical capacity to understand the extent of subsidies, or generally building institutional capacity (cf. Cheon et al. 2013). Moreover, in some cases it may be sensible to use NAMAs to tie fossil fuel subsidy reform to measures promoting alternative energy sources, which could increase the climate change mitigation benefits. ...
Article
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Analyses from international and nongovernmental organizations have pointed to the negative environmental, economic and social implications of the sizable subsidies handed out by governments for the production and consumption of fossil fuels. Given their relevance for achieving climate policy objectives, it is perhaps surprising that the climate regime established by the United Nations Framework Convention on Climate Change (UNFCCC) does not address fossil fuel subsidies. This article discusses the possible role of the UNFCCC in tackling fossil fuel subsidies. It suggests that the UNFCCC could enhance the transparency around fossil fuel subsidies and put in place incentives for countries to undertake subsidy reform. However, the possibilites under the UNFCCC will be limited by political barriers to subsidy reform at the national level and will need to be carried out in coordination with other international institutions active in the field.
... Better measures of energy policies can help observers track the climate change mitigation efforts of governments-including their adherence to the pledges they made in conjunction with the Paris climate agreementparticularly if the measures are comprehensive, based on observable data, replicable, and can be applied to all countries 9 . Consistent measures of fossil fuel price policies will also help scholars study the conditions that foster or impede politically difficult energy reforms [10][11][12] . ...
Article
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To reduce greenhouse gas emissions in the coming decades, many governments will have to reform their energy policies. These policies are diicult to measure with any precision. As a result, it is unclear whether progress has been made towards important energy policy reforms, such as reducing fossil fuel subsidies. We use new data to measure net taxes and subsidies for gasoline in almost all countries at the monthly level and find evidence of both progress and backsliding. From 2003 to 2015, gasoline taxes rose in 83 states but fell in 46 states. During the same period, the global mean gasoline tax fell by 13.3% due to faster consumption growth in countries with lower taxes. Our results suggest that global progress towards fossil fuel price reform has been mixed, and that many governments are failing to exploit one of the most cost-eeective policy tools for limiting greenhouse gas emissions.
... Policies aimed at maintaining low prices on petroleum products go beyond competition protection or promotion. More often, they take the form of subsidising petrol prices, which is a widespread practice, especially in large oil producing countries and countries with weak institutional capacities (Cheon, Urpelainen, & Lackner, 2013). In this context, the term 'subsidisation' is applied for different policy instruments. ...
Article
This article considers the mutual influence of antitrust enforcement in the petroleum product markets and competition legislation in Russia. An analysis of infringement decisions by the Russian competition authority allows us to understand the perceived goals of economic policy in this sector. The shift from antitrust investigations and infringement decisions to a very specific set of remedies is explained by the desire to maintain low retail prices under increasing concentration without price subsidisation or promotion of entry at the refining stage of the value chain. The article highlights the specific use of antitrust legislation to maintain low fuel prices and support independent retailing companies. We also note the limitation this policy faces. The goals and effects of antitrust enforcement in the industry explain, in turn, the specific path of competition legislation development in Russia.
... Der für eine Dekarbonisierung notwendige Wandel wird zudem erschwert, da diese Eigeninteressen durch staatliche Institutionen und Subventionen z. B. für die Exploration neuer Reserven und den Konsum gestützt werden (Cheon et al., 2013;G-20 Leaders, 2009;McLure, 2013). Organisationen mit heterogenen Zielen, Eigentümerstrukturen und Geschäftsmodellen haben sehr spezifische Herangehensweisen in Bezug auf die Entwicklung und Umsetzung von Anpassungs-und Emissionsminderungsstrategien. ...
... Während der Industrialisierung haben sich Wirtschaft und Energiesysteme unter wechselseitiger Beein ussung stark gewandelt (Sieferle 2010;Sieferle et al., 2006). (Cheon et al., 2013;G-20 Leaders, 2009;McLure, 2013). Organisationen mit heterogenen Zielen, Eigentümerstrukturen und Geschäftsmodellen haben sehr spezi sche Herangehensweisen in Bezug auf die Entwicklung und Umsetzung von Anpassungs-und Emissionsminderungsstrategien. ...
... In fact, the distribution of consumer subsidies in the form of price control and price gaps [29] has become really dominant among developing countries. This rentier instrument is touted as being a socio-economic tool aimed at reducing the economic burden on society's poor via the redistribution of national rent. ...
Article
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Recent studies in the field of political science and environmental resource governance suggest that oil-exporting economies have begun to implement fuel subsidy reforms. However, while most studies on this issue focus largely on the broader environmental and economic consequences of fuel subsidy reforms, few have examined specifically the effects on renewable energy transitions. Drawing insights from the literature on political economy and the multi-level perspective on socio-technical transitions, with empirical examples from Nigeria, first this study provides an explanation of which factors triggered fuel reforms on the basis of the interaction between landscape and regime elements and second the effects of such fuel reforms on renewable energy transitions. Findings suggest that landscape factors such as global oil crashes and pressures from international financial organisations played crucial roles in the drive for fuel reforms. Nonetheless, rentier regime members responded to these pressures by adopting institutional, discursive and redistributive measures. Of all three strategies, the institutional strategy was significantly pivotal in the proliferation of renewable energy in Nigeria. This study concludes by discussing lessons learned in shaping a transition away from fossil fuels in Nigeria and rentier countries in general.
... Often this is aggravated by the fact that policy designs tend to be focused on being technically sound and administratively feasible -rather than politically supportable (Pritchett, 2005;Strand, 2013). Consumption subsidies in particular tend to be paid in countries with weak institutional capacity and poor governance, and are a common political tool for luring voters or influential interest groups, rather than being sound economic policy (Cheon, Urpelainen, & Lackner, 2013;Commander, 2012). In addition, Lockwood (2014) notes that FFSs play a key role in manifesting and centralizing a state's political power. ...
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This article outlines the current state of affairs in fossil fuel subsidy reform, and highlights its contribution at the nexus of climate policy, fiscal stability and sustainable development. It discusses common definitions, provides quantitative estimates, and presents the evidence for key arguments in favour of subsidy reform. The main drivers and barriers for reform are also discussed, including the role of (low) oil prices and political economy challenges. Commitments to subsidy reform by the international community are reviewed, as well as the progress at the country level. Although fossil fuel subsidy reform indeed plays a critical role in climate policy, experience shows that the rationale for such reforms is determined in a complex environment of political economy challenges, macro-economic, fiscal and social factors, as well as external drivers such as energy prices. The article synthesizes the key principles for designing effective reforms and emphasizes that subsidy reforms cannot only yield fiscal relief, but should also contribute to long-term sustainable development objectives. Areas for future research are also identified. Policy relevance There is an increasingly strong international consensus that fossil fuel subsidies are detrimental in terms of economic, social and environmental sustainability. Organizations including the Intergovernmental Panel on Climate Change and the International Energy Agency consider fossil fuel subsidy reform a critical measure for achieving any ambitious emissions mitigation target. The reason is that these subsidies not only incentivize overconsumption of carbon-intensive energy, but directly undermine any effort to impose a price on carbon (e.g. through carbon taxes). While subsidy reform is crucial from a climate change perspective, the wide range of externalities associated with fuel subsidies also underscores the fact that reform is a vital contribution to sustainable development objectives more generally. This article emphasizes that fossil fuel subsidy reform can make a substantial contribution to climate policy, but also discusses how strongly environmental objectives are intertwined with fiscal, macro-economic, political and social factors. Although the momentum for subsidy reform is building, reforms are often designed to deliver fiscal rather than environmental benefits.
... Support does not have to be limited to financial flows but could also be aimed at enhancing the technical capacity to understand the extent of subsidies or at generally building institutional capacity (cf. Cheon et al. 2013). Already countries such as Denmark are offering funding to support fossil fuel subsidy reform, for instance, through the World Bank's Energy Sector Management Assistance Programme. ...
Chapter
The Politics of Fossil Fuel Subsidies and their Reform - edited by Jakob Skovgaard August 2018
... The propensity to use fuel subsidies to protect domestic consumers is often linked to the structure of the economy. Fuel exporters are particularly likely to have the kind of consumer price subsidies that are the object of protests (Cheon, Urpelainen, & Lackner, 2013;Victor, 2009). In energy-rich countries where state capacity to distribute resources is weak, consumer fuel subsidies tend to be common and resilient to reform efforts (Inchauste & Victor, 2017a). ...
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Fuel riots are common around the world. Between 2005 and 2018, 41 countries had at least one riot directly associated with popular demand for fuel. We make use of a new international dataset on fuel riots to explore the effects of fuel prices and price regimes on fuel riots. In line with prior expectations, we find that large domestic fuel price shocks are a key driver of riots - as these are often linked to international price shocks. In addition, we report a novel result: fuel riots are closely associated with domestic price regimes. Countries that maintain fixed price regimes - notably net energy exporters - tend to have large fuel subsidies. When such subsidies become unsustainable, domestic price adjustments are large, often leading to riots.
... An alternative way to measure the amount of energy subsidies is by using the price gap approach. Using this methodology, the amount of subsidies is calculated by multiplying the total amount of fossil fuel consumed in a particular country and year by the difference between the world market price and the actual price paid by end users in a country (Cheon, Urpelainen, & Lackner, 2013;Clements et al., 2013;Coady, Parry, Sears, & Shang, 2015;Gerasimchuk, 2014;Koplow, 2009;Steenblik, 2003;van Beers and Strand, 2013). However, there are also a number of important limitations to the latter approach (Koplow, 2009 best a "lower bound" estimate of the complete effects of subsidies as it only captures those that change the price of fossil fuel. ...
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This study explores whether the amount of fossil fuel subsidies paid by the government is subject to an election cycle. Theoretically, it is not a priori directly clear whether the provision of fossil fuel subsidies should go up or down when elections are upcoming. On the one hand, governments may reap electoral benefits from offering additional support in an election year since voters generally prefer candidates from whom they expect to receive greater material well‐being by reducing the prices of basic goods. On the other hand, if the number of recipients is only small or when they are politically not well organized, reducing fossil fuel subsidies to finance a tax cut or an increase in other public spending areas that benefit and attract more voters might be a more successful re‐election strategy. My main empirical findings clearly show a U‐shaped election effect. It turns out that election cycles encourage fossil fuel support only in countries that have either a large or small fossil fuel demand. In these countries, governments are more inclined to provide additional fossil fuel support in an election year. In turn, I do not find any significant evidence for the notion that upcoming elections create a window of opportunity to reduce fossil fuel subsidies. Finally, the significant election effects are in particular visible during presidential elections.
... An extended period of low oil prices raises an intriguing question: should governments of oil-exporting countries continue to subsidise costly energy subsidies? While the issue remains debatable, several studies argue that energy subsidies lead to numerous adverse economic, social and environmental impacts (see, for example, Birol et al., 1995;Cheon et al., 2013;Arzaghi and Squalli, 2015;Coady et al., 2015). Hence, considerable global efforts have been built to phase out energy subsidies (Vagliasindi, 2012). ...
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As part of 'Vision 2030', Saudi Arabia has initiated a broad-based energy reform programme aimed at gradually reducing its dependence on oil. This paper assesses the impacts of energy price reforms on living expenses of various household groups in Saudi Arabia. For this purpose, the input-output table combined with household expenditure data are used to model the impacts. Results show that the distributional impacts of energy price reforms are regressive, with low-income households experiencing a higher increase in living expenses compared to high-income households. The impacts are primarily instigated by rising prices of energy-intensive products. After decomposing the impacts into direct and indirect effects, it was found that indirect effect is not only responsible for a considerable rise in household expenditure on energy-intensive products, but it is also dis-tributionally regressive. It is therefore vital for policymakers to review and fine-tune the social protection system to protect poor households against reforms.
... However, the causality here can be difficult to establish: is it resource endowment that leads to higher energy subsidies, or is it the energy subsidies that create the feeling of entitlement? (Cheon et al., 2013). Anecdotally, one factor that appears to be influential in Indonesia's decision to finally drop gasoline subsidies at the turn of 2015 is the increasing awareness of the depletion of the countries' resource base. ...
... The propensity to use fuel subsidies to protect domestic consumers is often linked to the structure of the economy. The literature suggests that fuel exporters are particularly likely to have the kind of consumer price subsidies that are the object of protests (Cheon, Urpelainen, & Lackner, 2013;Victor, 2009). In energy-rich countries where state capacity to distribute resources is weak, consumer fuel subsidies tend to be common and resilient to reform efforts (Inchauste & Victor, 2017). ...
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Between 2005 and 2018, 41 countries had at least one riot directly associated with popular demand for fuel. We make use of a new international dataset on fuel riots to explore the effects of fuel prices and price regimes on fuel riots. In line with prior expectations, we find that large domestic fuel price shocks - often linked to international price shocks - are a key driver of riots. In addition, we report a novel result: fuel riots are closely associated with domestic price regimes. Countries that maintain fixed price regimes - notably net energy exporters - tend to have large fuel subsidies. When such subsidies become unsustainable, domestic price adjustments are large, often leading to riots.
... Many studies have examined the relationship between oil prices and macroeconomic variables, for instance those conducted by Barden et al. (2009), Cheon et al. (2013Cheon et al. ( , 2014 and Valadkhani and Mitchell (2002). These analyses focus on a single country's macroeconomic variables and highlight that it is imperative for oil-exporting countries to reshuffle government budgets due to declining oil prices. ...
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ASEAN states have a long history of fuel subsidization policies and are now undertaking substantial reforms. The lower crude oil price helps a country’s low-income group to gain access to modern forms of energy, thereby enabling ASEAN governments to implement mandatory policy reforms. However, most fuel-subsidized ASEAN emerging economies are still struggling to find long-term solutions. This paper aims to contribute to the debate on fuel subsidization policy in the South-East Asian economies. Applying the autoregressive distributed lag (ARDL) model using quarterly data range from 1992Q1 to 2018Q4, we find that removing fuel subsidization can affect the overall household consumption, GDP and oil prices in ASEAN nations. This research emphasizes that this impact can be substantial and affects people at different income levels. Decisions of ASEAN governments to abolish fuel subsidies in this region can significantly affect and alter its citizens’ living standard as well as national income measures such as GDP in both the short and long run. These findings provide evidence that when developing the energy pricing in these countries, governments must ensure that the policy is equitable and sustainable.
... 46 Because of the cost of retrofitting pollution-control technology and the lack of rigorous enforcement, coal-fired power plants continue to violate the emission rules. Regarding RES-2, given that Indian cities currently burn 2%-24% of their Benes et al., 28 Cheon et al., 29 Overland 30 ...
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Political-feasibility concerns are at the center of real-world air-pollution policymaking. Yet, these concerns are often not represented in leading decision-support tools that have been used for assessing policies' environmental impacts. Focusing on a wide range of clean-air policies in India, we assess their political-feasibility scores on the basis of public opinion, market, and institutional considerations and then incorporate these scores into the evaluation of environmental impacts by using an integrated assessment model (GAINS-South Asia). We demonstrate that although some policies with substantial potential to mitigate air pollution are also highly politically feasible (e.g., replacing solid fuels with cleaner fuels in households), others can be less politically feasible (e.g., banning agricultural waste burning). Because some clean-air policies co-reduce CO2 emissions and aerosols, considering varying degrees of political feasibility is particularly important in achieving air-pollution and climate objectives simultaneously because of its implications on the implementation scale and policy sequence.
... This trend is reflected in the observed correlation between fossil fuel subsidies and resource endowment. This correlation is particularly strong for oil-producing developing countries as a group, and especially for the MENA region (Cheon et al., 2013;El-Katiri and Fattouh, 2017;Moghaddam and Wirl, 2018). Similarly, democratic regimes facing credibility problems, such as younger democracies, can be encouraged to manipulate the electorate through clearly visible subsidies to fossil fuel energy consumption (Drazen and Eslava, 2010). ...
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The past two decades have witnessed widespread attempts to reform fossil fuel subsidies in developing countries. If the reforms are likely to improve economic efficiency, the expected effects on income distribution and poverty are more controversial. This paper reviews the recent literature that examines the impacts of fossil fuel subsidies and their reforms on income inequality and poverty in developing countries. It identifies the different channels that have been explored in the literature and surveys the empirical evidence on the importance of these channels in practice. Drawing on diverse country experiences, it also discusses why fossil fuel subsidies are particularly challenging to reform and highlights several ways in which efforts to reform may be feasible and successful.
... Often this is aggravated by the fact that policy designs tend to be focused on being technically sound and administratively feasible -rather than politically supportable (Pritchett, 2005;Strand, 2013). Consumption subsidies in particular tend to be paid in countries with weak institutional capacity and poor governance, and are a common political tool for luring voters or influential interest groups, rather than being sound economic policy (Cheon, Urpelainen, & Lackner, 2013;Commander, 2012). In addition, Lockwood (2014) notes that FFSs play a key role in manifesting and centralizing a state's political power. ...
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Renewable energy targets announced in 2014 present an opportunity to reform Indonesia's electricity sector which is dominated by fossil fuels. In this paper we discuss Indonesia's current renewable energy policies and future outlook for achieving the targets. This paper serves as a literature review of Indonesia's changing energy policy landscape, as part of a broader research investigating renewable energy targets and the role of the private sector. Despite Indonesia's wealth of renewable energy resources, numerous studies have identified multiple constraints to the development of renewable energy, including geographical, institutional and investment factors. Influential groups are calling for the Indonesian Government to put in place a clear policy framework that facilitates private sector investment. Therefore, interventions to facilitate investment in energy infrastructure in Indonesia must address the monopolised power market system that oversees a changing, complex malaise of electricity pricing regulations which make investment risky and uncertain. This study will enrich the existing literature on renewable energy policy which emphasises the importance of engaging the private sector. It is based on a rigorous qualitative assessment of Indonesia's changing policy that affects the progress of the renewable energy targets. The lessons from Indonesia's experience may provide insights for policymakers notably in developing countries.Keywords: energy in Indonesia, private sector investment, renewable energy
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Chapter
Energy subsidies are an important tool through which governments can support domestic energy production and protect energy consumers. However, the exact size of these subsidies in many countries remains unclear. More importantly, energy subsidies have a variety of positive and negative economic, environmental and social effects, and it remains unclear how and under which political conditions negative effects stemming from energy subsidies could be mitigated. This chapter addresses these issues by examining the reasons why countries choose to subsidise energy production and consumption, the scope and effects of energy subsidies, and options for reform. The chapter also highlights the roles played by various international institutions in governing energy subsidies. It concludes with outlining areas for further inquiry.
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governments spend staggering sums of money subsidizing fossil fuels, with many harmful consequences for public budgets, energy markets, and pollution. While there is widespread agreement among analysts that most of these subsidies serve no legitimate purpose, cutting subsidies has proved extremely difficult. This paper explores the politics of subsidy creation and reform and suggests some strategies for improving the odds that reformers will be politically successful. Subsidies exist often because they are the only reliable mechanism available to governments that are under pressure to provide benefits to politically well-organized groups. Not understanding the political economy of subsidy policies can prevent successful reform, and the report argues that successful subsidy reforms often require broader reforms and improvement in public administration to create mechanisms that can compensate political losers. It is available at: http://www.globalsubsidies.org/en/research/political-economy
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To a large extent, subsidies to fossil fuels amount to a waste of precious government resources. In the case of consumer subsidies provided mostly in developing countries, these subsidies are often intended as measures to alleviate poverty. In practice, however, they frequently miss that objective, with benefits largely reaped by higher income groups who can afford motor vehicles and electrical goods. Better-designed and targeted policies can achieve poverty reduction far more cost-effectively.Moreover, reducing the burden of subsidies from the public purse would help relieve fiscal debt during a time of economic recession; free up government resources for other priorities such as education and healthcare; and contribute towards addressing climate change by reducing greenhouse gas emissions and reducing investment barriers for clean and renewable energy technologies and resources.This report looks at three cases where governments - Ghana, France and Senegal - have undertaken fossil-fuel subsidy reform with varying degrees of success. While the specific circumstances of each country is unique, there appear to be elements of successful reform strategies that are consistent across different types of subsidies, fuels and countries. Drawing from these three case studies, this report describes how effective strategies are based on:• a deep understanding of the subsidy, its original objectives, the rationale for reform and the likely impacts;• establishing clear objectives and parameters for reform;• building support by communicating the benefits of reform and consulting stakeholders;• policy measures to reduce negative impacts on affected groups; • ongoing monitoring, and evaluation of reform and the flexibility to adjust policies in changing circumstances; and,• independent pricing mechanisms to prevent the government being drawn back in to subsidization.This paper is published as part of the series "Untold Billions: Fossil-fuel subsidies, their impacts and the path to reform."
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In "Measuring Price Subsidies Using the Price-Gap Approach: What Does it Leave Out?" prepared under the International Institute for Sustainable Development’s (IISD) Bali to Copenhagen project, Doug Koplow looks at the most commonly employed methodology for estimating fossil-fuel subsidies, the ‘price-gap’ method. The report explains how the price-gap method works, reviews its benefits and limitations, and explores potential systematic bias in estimates, drawing conclusions and implications for their interpretation. Among its key findings are: Price-gap data are basic information needed to estimate support to producers and consumers, and should be collected annually for all major fossil-fuel energy producing and consuming nations. Measuring the price-gap does not capture everything. Reliance on only price-gap data will dramatically understate the magnitude of fossil-fuel subsidies globally, as it fails to capture subsidy flows that do not change fuel prices. The ‘transfer method’, which quantifies all subsidy flows conferred by a country’s fossil fuel policy interventions, is more difficult to complete but can help ‘fill in’ some of these gaps. Transfer studies should be conducted every five years in the top ten fossil-energy producing and consuming nations, as well as countries who derive large portions of their GDP from extractive industries.
Article
This paper examines the policy alternatives faced by developing countries in their endeavor to preserve and develop their electricity and gas systems, two service-oriented industries which—along with oil—provide the bulk of energy supply both in developed and in developing countries. Even in very poor countries, industrially generated energy is indispensable for carrying out most economic activities. Therefore, governments traditionally recognize that the supply of gas and electricity entails a fundamental public service dimension. The Introduction presents the case for reforming of energy utilities, discusses in general terms the pros and cons of privatization, and attempts to locate the reforms in a broader historical framework in which developing countries’ governments faced characterized by increasing financial hardship. Section 2 constitutes the core of the paper. It reviews the main features of gas and power sector reforms in the developing world and analyzes specifically the cases of five semi-industrialized countries in Latin America and Asia. Section 3 (Concluding remarks) briefly evaluates the country experiences reviewed above and indicates a few policy lessons which can be learnt from them. The main conclusion is that, in a long-run development perspective, full-scale privatization of gas and power sectors in developing countries entails significant risks, and therefore a flexible policy approach is preferable to a rigid commitment to extensive liberalization.
Article
We develop a theory of political transitions inspired by the experiences of Western Europe and Latin America. Nondemocratic societies are controlled by a rich elite. The initially disenfranchised poor can contest power by threatening revolution, especially when the opportunity cost is low, for example, during recessions. The threat of revolution may force the elite to democratize. Democracy may not consolidate because it is redistributive, and so gives the elite an incentive to mount a coup. Highly unequal societies are less likely to consolidate democracy, and may end up oscillating between regimes and suffer substantial fiscal volatility.
Article
The panel data unit root test suggested by Levin and Lin (LL) has been widely used in several applications, notably in papers on tests of the purchasing power parity hypothesis. This test is based on a very restrictive hypothesis which is rarely ever of interest in practice. The Im-Pesaran-Shin (IPS) test relaxes the restrictive assumption of the LL test. This paper argues that although the IPS test has been offered as a generalization of the LL test, it is best viewed as a test for summarizing the evidence from a number of independent tests of the sample hypothesis. This problem has a long statistical history going back to R. A. Fisher. This paper suggests the Fisher test as a panel data unit root test, compares it with the LL and IPS tests, and the Bonferroni bounds test which is valid for correlated tests. Overall, the evidence points to the Fisher test with bootstrap-based critical values as the preferred choice. We also suggest the use of the Fisher test for testing stationarity as the null and also in testing for cointegration in panel data. Copyright 1999 by Blackwell Publishing Ltd
Future Challenges for the Arab World: The Implications of Demographic and Economic Trends. Project Air Force. Rand Corporation
  • Rand Corporation
RAND Corporation, 2011. Future Challenges for the Arab World: The Implications of Demographic and Economic Trends. Project Air Force. Rand Corporation, Santa Monica.
Democracy and Redistribution Petroleum Subsidies in Yemen: Leveraging Reform for Development
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Boix, C., 2003. Democracy and Redistribution. Cambridge University Press, New York. Breisinger, C., Engelke, W., Ecker, O., 2011. Petroleum Subsidies in Yemen: Leveraging Reform for Development. International Food Policy Research Institute, Discussion Paper 01071.
United Nations Development Programme
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Fattouh, B., El-Katiri, L., 2012. Energy Subsidies in the Arab World. United Nations Development Programme, Regional Bureau for Arab States.
Petroleum Product Subsidies: Costly, Inequitable, and Rising. IMF Staff Position Note International Fuel Prices
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Coady, D., Gillingham, R., Ossowski, R., Piotrowski, J., Tareq, S., Tyson, J., 2010. Petroleum Product Subsidies: Costly, Inequitable, and Rising. IMF Staff Position Note, February 25. Deutsche Gesellschaft f ¨ ur Technische Zusammenarbeit, 2009. International Fuel Prices 2009, 6th ed., /http://www.gtz.de/de/dokumente/gtz2009-en-ifp-fullversion.pdfS.