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

This paper discusses how SSA countries respond todifficult questions.
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Volume/Issue: Volume 2013 Issue 002
Publication date: August 2013
ISBN: 9781484366547
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Topics covered in this book

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Inflation , Economics- Macroeconomics , Public Finance , Taxation - General , 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

Summary

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.