Energy Subsidy Reform : Lessons and Implications

Back Matter

Back Matter

Author(s):
Benedict Clements, David Coady, Stefania Fabrizio, Sanjeev Gupta, Trevor Alleyne, and Carlo Sdralevich
Published Date:
September 2013
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    References

    Contributors

    Trevor Alleyne, Advisor, African Department

    Andreas Bauer, Assistant Director, Strategy, Policy, and Review Department

    Benedict Clements, Division Chief, Fiscal Affairs Department

    David Coady, Deputy Division Chief, Fiscal Affairs Department

    Antonio David, Economist, Institute for Capacity Development

    Ozgur Demirkol, Senior Economist, Middle East and Central Asia Department

    Allan Dizioli, Economist, Fiscal Affairs Department

    Stefania Fabrizio, Deputy Division Chief, Fiscal Affairs Department

    Katja Funke, Economist, Fiscal Affairs Department

    Sanjeev Gupta, Deputy Director, Fiscal Affairs Department

    Farayi Gwenhamo, Economist, African Department

    Mumtaz Hussain, Senior Economist, African Department

    Christian Josz, Deputy Division Chief, African Department

    Alvar Kangur, Economist, Fiscal Affairs Department

    Javier Kapsoli, Economist, Fiscal Affairs Department

    Kangni Kpodar, Senior Economist, Fiscal Affairs Department

    Clara Mira, Economist, African Department

    Luc Moers, Senior Economist, Middle East and Central Asia Department

    Masahiro Nozaki, Senior Economist, Fiscal Affairs Department

    Anton Op de Beke, Resident Representative, African Department

    Dragana Ostojic, Economist, Middle East and Central Asia Department

    Ian Parry, Technical Assistance Advisor, Fiscal Affairs Department

    Edgardo Ruggiero, Senior Economist, African Department

    Carlo Sdralevich, Deputy Division Chief, Middle East and Central Asia Department

    Louis Sears, Research Assistant, Fiscal Affairs Department

    Baoping Shang, Economist, Fiscal Affairs Department

    Sukhwinder Singh, Assistant to the Director, African Department

    Mauricio Soto, Economist, Fiscal Affairs Department

    Vimal Thakoor, Economist, African Department

    Genevieve Verdier, Senior Economist, African Department

    Mauricio Villafuerte, Deputy Division Chief, African Department

    Younes Zouhar, Senior Economist, Middle East and Central Asia Department

    Index

    [Page numbers followed by b, f, n, or t refer to boxes, figures, footnotes or tables, respectively.]

    A

    Africa. See Middle East and North Africa; Sub-Saharan Africa

    Agência Nacional do Petróleo (Brazil), 104–5

    alternative energy, affordable, 38

    Armenia, 28, 36

    • bill collection rate for electricity in, 128–29, 131f, 133

    • electricity sector financial deficit in, 130f

    • electricity subsidies in, 127–33

    • macroeconomics and, 127t, 131f

    • residential electricity tariffs in, 129f

    • Azerbaijan conflict and, 128

    Arroyo administration, 83

    Asia, reforms in, 75–85

    • in Indonesia, 75–79

    • magnitude of subsidies and, 11, 11f, 12f

    • in Philippines, 79–85

    Asian crisis, 75, 78, 81

    assessment of reform impact, 31

    • in Ghana, 45, 46

    • in Nigeria, 62

    automatic pricing mechanisms, 39, 64

    • in Mauritania, 93–94, 95–96

    • in Niger, 53

    • in Turkey, 124–25

    B

    Balabanyan, Ani, 130

    balance-of-payments, 18

    Bantuan Langsun Tunai (Indonesia), 77–78

    Belgium, 13

    black markets, 98

    block tariff scheme (IBT), 66

    Brazil, 29, 33, 34

    • electricity subsidies in, 115–18

    • fuel prices in, 105–6, 106f

    • macroeconomics and, 104t, 105f, 117f

    • petroleum product subsidies in, 103–8

    Briceño-Garmendia, C., 68

    budgets, recording of subsidies in, 7, 26

    • in Mexico, 120

    • in Niger, 55

    • in Uganda, 71, 71t

    Bujagali hydro generation unit (Uganda), 71–72

    Burkina Faso, 35

    C

    Cape Verde, 35

    capital-intensive industries, 2

    Cardoso administration, 107, 118

    Caribbean, 11, 11f, 12f, 13

    case studies, 4, 23, 24–25t, 26, 26n2

    cash transfers, 36–37

    • in Armenia, 132

    • in Brazil, 107

    • in Indonesia, 77–78

    • in Iran, 87–90

    • in Mauritania, 95

    • in Mexico, 122

    • in Yemen, 99–100

    Central and Eastern Europe and the Commonwealth of Independent States (CIS)

    • Armenia and, 127–33

    • magnitude of subsidies and, 11, 11f, 12f

    • Poland and, 136–42

    • Turkey and, 123–27, 133–36

    Central Energy Fund (South Africa), 63–64

    CFE (Comisión Federal de Electricidad) (Mexico), 119–20

    Chile

    • macroeconomics and, 108t

    • petroleum product subsidies in, 108–11

    • stabilization funds in, 110f

    China, 13, 40

    CIS. See Commonwealth of Independent States (CIS)

    CO2 emissions

    • corrective taxes and, 145, 146

    • environmental and health impact of, 165–67

    • subsidy reform and, 19

    coal

    • corrective taxes and, 147

    • environmental and health impact of, 166

    • international prices of, 2f

    • pretax subsidies and, 144, 144n2

    coal subsidies

    • as percent of total, 9

    • in Poland, 136–42

    collection rates, in Armenia, 128–29, 131f, 133

    Comisión Federal de Electricidad (Mexico), 29, 119

    Comisión Reguladora de la Energia (Mexico), 119

    communication strategy, 32–33

    • in Ghana, 45, 46

    • in Indonesia, 79

    • in Iran, 90

    • in Niger, 56

    • in Nigeria, 59–60, 61

    • in Philippines, 80, 82

    • in Uganda, 74

    community development, 100

    competitiveness, 15–16, 17–18b, 28

    comprehensive reform plans, 29–32

    • in Namibia, 51

    • in Philippines, 80, 82, 84–85

    • in Yemen, 100

    consequences of subsidies, 2–3

    • depression of economic growth and, 15–18

    • inequity and, 19–21, 20f

    • macroeconomic imbalances and, 18

    • overconsumption of energy and, 18–19

    Consumer’s Protection System for Fuel Excise Taxes (SIPCO) (Chile), 110

    consumer subsidies, 1–2, 5–13, 6b

    corrective taxes, 6n3, 8, 145–47, 145n4, 146t

    cost of subsidies. See consequences of subsidies; financing of subsidies

    CRC (Conta de Resultados a Compensar) (Brazil), 116

    crises, economic

    • 1997 Asian, 75, 78, 81

    • 2007–8 global fuel and food, 2, 46, 81, 92

    crude oil

    • in Brazil, 103

    • in Chile, 108

    • international prices of, 2f

    • in South Africa, 62

    D

    definition and measurement of subsidies, 5–13

    • caveats and, 8–9, 167

    • consumer, 1–2, 5–13, 6b

    • environmental and health impact and, 165–67

    • posttax, 6, 6b, 8, 13, 145–48, 157–64t

    • pretax, 1–2, 5–13, 6b, 9f, 10f, 11f, 143–45, 149–55t

    • producer, 1, 5, 8, 8n4

    • tax, 2, 5

    Deutsche Gesellschaftfur Internationale Zusammenarbeit (GIZ), 7, 143

    diesel

    • in Brazil, 29, 34, 103–7

    • effects of subsidies on, 19, 20f

    • environmental impact of, 165

    • in Indonesia, 76

    • international prices of, 2f

    • in Mauritania, 93, 93f, 94

    • in Namibia, 48–49

    • in Niger, 53, 55

    • in Nigeria, 57, 57n3

    • in Peru, 34, 111–12

    • in Turkey, 125, 126, 126f

    • in Uganda, 73

    • in Yemen, 96, 98

    distributional effects of subsidies, 19, 20f

    E

    economic growth, depression of, 15–18

    electricity

    • dual rate meters and, 132–33

    • generators and, 15n1, 68

    • pretax subsidies and, 144–45

    • price regulation and, 41

    • subsistence level of, 68

    • supply cost and, 6b

    • thermal power and, 70–71, 73, 94

    Electricity Regulatory Authority (Uganda), 70, 72

    electricity subsidies

    • in Armenia, 28, 31, 36–37, 127–33

    • in Brazil, 31, 115–18

    • in Cape Verde, 35

    • effects of, 19

    • in Kenya, 31, 33, 64–69

    • low-income groups and, 20, 37 (see also poverty, impact of subsidies on; poverty, mitigating measures for)

    • in Mauritania, 94, 96

    • measurement and, 8

    • in Mexico, 27–30, 119–22

    • as percent of total, 9

    • in Philippines, 82–84

    • pretax, 9

    • reform and, 3, 30–31

    • in Sub-Saharan Africa, 16b

    • in Turkey, 29–30, 34, 133–36

    • in Uganda, 27, 33, 69–74

    Electric Power Industry Reform Act (Philippines), 83

    Emerging and Developing Asia. See Asia

    ENAP (national oil company of Chile), 108–9

    energy, affordable alternative, 38

    energy consumption, 2–3, 18–19

    Energy Market Regulatory Authority (Turkey), 40, 125, 127

    Energy Regulatory Commission (Philippines), 83

    Energy Regulatory Commission (ERC) (Kenya), 65–67, 69

    energy sector investment, 15–16, 16b

    energy shortages, 15, 15n1

    Energy Tribunal, 65

    enterprise

    • development, 100

    • restructuring, 89, 138–39

    environmental impact, 165–67

    Equalization Fund (South Africa), 63

    equity and subsidies, 19–21, 20f

    • see also poverty, mitigating measures for

    Eskom Uganda, 70

    ethanol, in Brazil, 106–7

    Europe. See Central and Eastern Europe and the Commonwealth of Independent States (CIS)

    European Union (EU), Turkey and, 124–25, 127

    excise taxes, 110, 112, 114, 125, 126f

    Extended Arrangement (1998) (Philippines), 79

    Extended Credit Facility (ECF) (Mauritania), 92

    F

    FEPC (Fondo de Estabilización de Precios de los Combustibles) (Chile), 109–10

    FEPC (Fondo de Estabilización de Precios de Combustibles) (Peru), 112–14

    FEPP (Fondo de Estabilización de Precios del Petróleo) (Chile), 109–11

    Finance and Public Credit, Ministry of (Mexico), 119–20

    financial partners, engaging, 56

    financing of subsidies, 7, 7b

    fiscal imbalances, 2

    Fox administration, 120–21

    French Development Agency, 94, 96

    Fuel Prices Stabilization Fund (FEPC) (Chile), 109–10

    G

    G-20 Pittsburgh Communiqué, 1n1

    Gabon, 39

    gasoline

    • in Brazil, 34, 104, 106

    • effects of subsidies on, 19, 20f

    • environmental impact of, 165

    • international prices of, 2f

    • in Iran, 87, 89

    • in Niger, 53, 55

    • in Nigeria, 31, 57–61

    • in Peru, 34, 115

    • in Turkey, 125, 126f

    • in Yemen, 96, 98, 98n2

    gas vouchers, in Brazil, 107–8

    generators, cost of, 15n1, 68

    Ghana, 31, 33, 36, 38, 39

    • fuel prices and, 45f

    • macroeconomics and, 44t

    • petroleum product subsidies in, 43–47

    Ghana Commercial Bank, 44

    global subsidies landscape, 1–2

    global warming

    • estimates of damage of, 8

    • overconsumption of energy and, 18–19

    government and governance

    • improvements in, 102

    • lack of confidence in, 27, 78

    • role of, in liberalizing regime, 41

    • SOEs and, 35

    H

    Hankinson, Denzel, 130

    health impact, 165–67

    I

    IMF (International Monetary Fund)

    • Extended Credit Facility (Yemen), 98

    • pretax subsidies and, 7–8, 143–45

    • programs of, 52–53, 53n2, 75, 79–80, 82, 92–94

    • reform case studies and, 3–4, 26

    implicit subsidies, 26, 26n4

    import tax, 107

    incentives

    • domestic energy consumption and, 18

    • energy efficiency and, 18

    • smuggling and, 3, 16, 16n2

    independent bodies/agencies, 39–40

    • in Armenia, 133

    • in Ghana, 46

    • in Indonesia, 78–79

    • in Kenya, 69

    • in Turkey, 125, 127

    • in Uganda, 74

    India, financing fuel subsidies in, 7b

    Indonesia, 27, 31–32, 36, 38

    • macroeconomics and, 76t, 77f

    • petroleum product subsidies in, 75–79

    industrial sector, 28

    inflation

    • opposition to reform and, 28–29

    • smoothing rule and, 40

    • subsidy reform and, 3

    information, campaign of public

    • in Armenia, 129, 133

    • in Ghana, 46

    • in Iran, 90

    • in Niger, 56

    • in Nigeria, 59–61

    • in Philippines, 80

    • in Yemen, 98, 100

    information, impact of lack of, 26–27, 120, 120n8

    interest group opposition, 28–29

    • in Ghana, 46

    • in Indonesia, 75

    • in Mexico, 120–21

    • in Nigeria, 60

    • in Philippines, 79, 79n1

    • in Poland, 136, 138

    international energy prices. See prices, international

    investment

    • in energy, 3, 15–16

    • lack of and inefficiencies, 74

    • private, 2, 15–16

    IPPs (independent power producers) (Philippines), 82

    Iran, 28, 30, 38

    • macroeconomics and, 88t

    • petroleum product subsidies in, 87–90

    Islamic Development Bank, 94

    J

    Justice and Development Party (Turkey), 125

    K

    Kenya, 31, 33, 37

    • electricity subsidies in, 64–69

    • hidden costs in power sector, 67f

    • macroeconomics and, 65t

    • power sector indicators, 66t

    Kenya Electricity Generating Company (KenGen), 65–66

    Kenya Power and Lighting Company (KPLC), 65–68

    kerosene

    • effects of subsidies on, 19, 20f

    • environmental impact of, 165

    • in Indonesia, 38, 76, 77–78

    • international prices of, 2f

    • in Niger, 53

    • in Nigeria, 57–59

    • in Uganda, 73

    • in Yemen, 38, 96, 98, 100

    L

    labor market program, in Poland, 139–42

    labor unions. See unions

    Latin America and Caribbean, reforms in

    • in Brazil, 103–8, 115–18

    • in Chile, 108–11

    • magnitude of subsidies and, 11, 11f, 12f, 13

    • in Mexico, 119–22

    • in Peru, 111–15

    (LFC) Luz y Fuerza del Centro (Mexico), 119n5

    liabilities, assumption of, 142

    lifeline tariffs, 37, 69, 73, 74, 84

    liquefied petroleum gas (LPG)

    • in Brazil, 103–4, 106–7

    • consumer subsidies for, 8

    • effects of subsidies on, 20f

    • in Indonesia, 38, 76, 77–78

    • in Peru, 112, 114

    • in Philippines, 37

    • in Turkey, 34, 126

    • in Yemen, 38, 96, 98, 100

    Liquid Fuels Industry Task Force (South Africa), 63

    Livelihood Empowerment against Poverty (LEAP) (Ghana), 47

    LPG. See liquefied petroleum gas (LPG)

    M

    macroeconomic conditions as barriers, 29

    macroeconomic imbalances, 18

    Mali, 35

    Mauritania, 33

    • macroeconomics and, 91t

    • petroleum product subsidies in, 90–96

    measurement

    • price-gap approach, 5, 7, 8

    • See also definition and measurement of subsidies

    messages, key, in communication, 32

    Mexico, 27, 28–29

    • electricity subsidies in, 119–22

    • macroeconomics and, 121f

    Middle East and North Africa, reforms in

    • in Iran, 87–90

    • magnitude of subsidies and, 11, 11f, 12f, 13

    • in Mauritania, 90–96

    • in Yemen, 96–102

    Mines and Energy, Ministry of (Namibia), 48–51

    mitigating measures. See poverty, mitigating measures for

    Mota, Raffaella, 118

    Motherland Party (Turkey), 124–25

    motor fuel, corrective taxes and, 146t

    multitier tariffs, 89

    N

    Namibia, 30, 31, 32, 33

    • macroeconomics and, 47t, 50f

    • National Energy Fund and Slate Account, 49f

    • petroleum products subsidies in, 47–51

    Namibian Petroleum Corporation (Namcor), 48, 50

    National Deregulation Task Force (Namibia), 31, 49

    National Energy Council (Indonesia), 79

    National Energy Council (Namibia), 31, 49

    National Energy Fund (NEF) (Namibia), 48–51

    National Petroleum Agency (NPA) (Ghana), 43, 45–46

    National Power Corporation (NPC) (Philippines), 82–84

    National Union of Namibian Workers, 47

    natural gas

    • in Brazil, 106

    • corrective taxes and, 147

    • effects of subsidies on, 19

    • environmental and health impact of, 166

    • international prices of, 2f

    • pretax subsidies and, 9, 144, 144n2

    natural resources, 3

    Niger, 31, 33

    • fuel prices and, 54f

    • macroeconomics and, 52t, 54f

    • petroleum products subsidies in, 51–57

    Nigeria, 28, 33

    • fuel prices and, 58f, 58t

    • macroeconomics and, 57t

    • petroleum products subsidies in, 57–62

    North Africa. See Middle East and North Africa

    O

    objectives, long-term, 30–31, 78

    OECD (Organisation for Economic Co-operation and Development)

    • environment and health impact and, 166

    • posttax subsidies and, 147

    • pretax subsidies and, 7–8, 143–44

    oil-exporting countries

    • budgets and, 26

    • subsidy magnitude and, 11

    • subsidy reform and, 3

    oil price stabilization fund (Brazil), 103, 107

    Oil Price Stabilization Fund (Philippines), 79–81

    Oil Prices Stabilization Fund (FEPP) (Chile), 109–11

    OMCs (oil marketing companies), 7b

    Oportunidades (Mexico), 122

    P

    participative approach, 56

    pass-through to domestic prices, 1, 18

    • in Brazil, 106, 108

    • in Kenya, 65–66

    • in Namibia, 48, 50

    • in Niger, 52–53, 53n2

    • in Peru, 113

    • in Yemen, 101f

    “People’s Power” revolution (Philippines), 79

    Peru, 29, 34, 40

    • fuel subsidies and, 113f

    • petroleum product subsidies in, 111–15

    • stabilization fund and, 112–14, 114t

    Petrobras (Brazil), 103–6

    Petroleum Market Law (Turkey), 40, 125, 127

    petroleum products

    • corrective taxes and, 146–47

    • environmental and health impact of, 165

    • pretax subsidies and, 143–44

    Petroleum Products Pricing Regulatory Agency (Nigeria), 57

    petroleum products subsidies

    • in Brazil, 103–8

    • in Chile, 108–11

    • in Ghana, 43–47

    • in Indonesia, 75–79

    • in Iran, 87–90

    • in Mauritania, 90–96

    • in Namibia, 43–47

    • in Niger, 51–57

    • in Nigeria, 57–62

    • as percent of total, 9

    • in Peru, 111–15

    • in Philippines, 79–82

    • pretax, 9, 20f

    • in South Africa, 62–64

    • in Turkey, 123–27

    • in Yemen, 96–102

    Petroleum Support Fund (PSF), 57–58

    Petrol Ofisi (Turkey), 123

    PetroPerú, 112

    phasing of price increases, 33–34

    • in Brazil, 107

    • in Indonesia, 76

    • in Iran, 87–88, 90

    • in Niger, 53, 55

    Philippines, 27, 30, 32, 34, 37, 39

    • electricity subsidies in, 82–84

    • macroeconomics and, 80t, 81f, 8t, 84f

    • petroleum product subsidies in, 79–82

    “Pigouvian” taxes, 6n3, 145

    plans for reform. See comprehensive reform plans

    Poland, 29, 38

    • coal industry indicators in, 140t, 141f

    • coal prices in, 138f

    • coal subsidies in, 136–142

    • macroeconomics and, 137t, 139f

    politics and depoliticization, 38–41

    • in Armenia, 130, 133

    • in Brazil, 107, 118

    • in Ghana, 46, 51

    • in Mauritania, 95

    • in Mexico, 120–21

    • in Philippines, 79–80, 84

    • in Poland, 139–42

    • in Turkey, 127

    pollution

    • environmental and health impact of, 165

    • overconsumption of energy and, 18–19

    posttax subsidies

    • calculating, 148

    • corrective taxes and, 145–47

    • definition and measurement of, 6, 6b, 8, 13

    • low-income countries and, 147n6

    • as percent of GDP, 157–60t

    • in percent of government revenues, 161–64t

    • revenue component of, 147–48

    poverty, impact of subsidies on, 20

    poverty, mitigating measures for, 28, 36–38

    • in Armenia, 132–33

    • in Brazil, 107–8, 118

    • in Chile, 111

    • in Ghana, 44–47

    • in Indonesia, 77–78

    • in Iran, 88–89, 90

    • in Kenya, 68–69

    • in Mauritania, 92, 94–96

    • in Mexico, 122

    • in Namibia, 51

    • in Niger, 56–57

    • in Nigeria, 61

    • in Philippines, 81–82, 84

    • in Poland, 139–42

    • in Turkey, 125–26

    • in Yemen, 99–100

    Poverty Family Benefit (Armenia), 36–37

    Poverty Reduction and Growth Facility (PRGF), 92

    pretax subsidies

    • coal and natural gas and, 144

    • definition and measurement of, 1–2, 5–8, 6b, 9f

    • electricity and, 144–45

    • geography of, 11–13, 11f, 12f

    • magnitude of, 9–11, 10f

    • in percent of GDP, 149–52t

    • in percent of government revenues, 153–56t

    • petroleum products and, 143–44

    PRI (Partido Revolucionario Institucional) (Mexico), 121

    price-gap approach, 5, 7, 8

    prices, international, 1–2, 2f, 94

    • competitiveness and, 17–18b

    • domestic prices and, 18, 27–28, 34, 38–41

    • opposition to reform and, 28

    • overconsumption of energy and, 19

    • subsidy measurement and, 5, 6b, 7b

    pricing

    • depoliticization of, 38–41

    • multiple prices and, 100

    • phased and sequenced increases in, 33–34, 107

    • See also automatic pricing mechanisms

    private sector investment, 2, 15–16

    privatization

    • in Armenia, 130

    • in Brazil, 104–5, 115–18

    • in Mexico, 27, 120

    • in Philippines, 84–85

    • in Poland, 141–42

    • in Turkey, 40, 124

    • in Uganda, 69

    producer subsidies, 1, 5, 8, 8n4

    Public Electricity Service Act (Mexico), 119n6

    public spending, 2, 15, 17f, 20–21, 37

    public support for subsidy reform, 3, 3n2, 26–29, 32

    Public Works Project (Yemen), 100

    Q

    Quasi-fiscal deficit (QFD), in Uganda, 71–72, 72t

    R

    Ramos administration, 80, 82

    reform, 23–41

    • barriers to, 26–29

    • challenges and success of, 3

    • episodes of, 24–25t

    • See also coal subsidies; electricity subsidies; petroleum products subsidies; strategies for reform

    regional integration, SOEs and, 35

    Relapasa (Peru), 112

    renewable energy investment, 3

    research. See assessment of reform impact

    Rural Electrification Agency (Uganda), 70

    Russia, 13

    S

    safety net, 21, 28, 33, 34

    • in Armenia, 132

    • in Mauritania, 94–95

    • in Mexico, 122

    • in Nigeria, 61

    • in Poland, 139–42

    • reforms and, 36, 37, 41

    • See also poverty, mitigating measures for

    Sargsyan, Gevorg, 130

    sequencing of price increases, 34

    Shkaratan, M., 68

    Small Power Utilities Group (Philippines), 84

    smoothing rules/mechanisms, 40

    • in Chile, 109–11

    • in Mauritania, 94–95

    • in Namibia, 51

    • in Niger, 53

    • in Peru, 112–13, 114–15

    smuggling, 3, 16, 16n2

    • in Niger, 53

    • in Nigeria, 58–59

    SO2

    • corrective taxes and, 147

    • environmental and health impact of, 165–66

    • subsidy reform and, 19

    Social Fund for Development, 100

    social spending. See public spending

    Social Welfare Fund, 100

    SOMELEC (Mauritania), 94

    SONIDEP (Niger), 52

    SORAZ (Niger), 52, 55

    South Africa, 33, 39

    • gasoline pump prices in, 63f

    • macroeconomics and, 62t

    • petroleum product subsidies in, 62–64

    Southern African Customs Union (SACU), 47

    Soviet Union collapse, 128

    stabilization funds

    • in Brazil, 103

    • in Chile, 109–11

    • in Peru, 112–14

    • in Philippines, 79–81

    stakeholders, consultation with, 31–32

    • in Ghana, 46

    • in Niger, 55, 56

    state-owned enterprises (SOEs)

    • improved efficiency of, 35, 69

    • investment in energy by, 15

    • as obstacles to reform, 28, 123–24

    • pretax subsidies and, 7

    • restructuring and, 136

    • social measures and, 38

    strategies for reform, 29–41

    • communication and, 32–33

    • comprehensive plan and, 29–32

    • depoliticization of pricing and, 38–41

    • phased and sequenced price increases and, 33–34

    • protection for the poor and, 36–38

    • SOEs improved efficiency and, 35

    sub-Saharan Africa, reforms in, 35, 43–74

    • electricity subsidies and, 16b

    • in Ghana, 43–47

    • in Kenya, 64–69

    • magnitude of subsidies and, 11f, 12f, 13

    • in Namibia, 47–51

    • in Niger, 51–57

    • in Nigeria, 57–62

    • in South Africa, 62–64

    • in Uganda, 69–74

    Subsidy Reinvestment and Empowerment (SURE) Program (Nigeria), 59–61

    Suharto administration, 76, 78

    supply cost, 5, 5n2, 8

    • electricity and, 6b

    T

    Taiwan Province of China, 13

    tariffs

    • lifeline, 37, 69, 73, 74, 84, 128

    • multitier, 89

    • “summer subsidies” and, 121–22

    taxes, excise, 110, 112, 114, 125

    tax subsidies, 2, 5, 126

    technical assistance missions, 26, 26n3

    Tema Oil Refinery (TOR) (Ghana), 43–44

    thermal power, 70–71, 73, 94

    transparency, 32–33

    • in Chile, 111

    • in Kenya, 69

    • in Niger, 56

    • in Peru, 115

    • in South Africa, 62

    TÜPRAŞ (Turkey), 123–25

    Turkey, 23n1, 29, 30, 34, 39, 40

    • electricity subsidies in, 133–36

    • macroeconomics and, 124t, 125f

    • petroleum product subsidies in, 123–27

    Türkiye Petrolleri Anonim Ortakl1ğ1 (TPAO), 123

    U

    Uganda, 32, 33

    • electricity subsidies in, 69–74

    • explicit fiscal subsidies in, 71t

    • macroeconomics and, 70t

    • quasi-fiscal deficit QFD in, 71–72, 72t

    Uganda Electricity Board (UEB), 69

    Uganda Electricity Distribution Company, Ltd. (UEDCL), 70

    Uganda Electricity Generation Company Ltd. (UEGCL), 70

    Uganda Electricity Transmission Company, Ltd. (UETCL), 70–71

    UMEME Ltd. (Uganda), 70, 71, 74

    UNICEF, 95–96

    unions, 29

    • in Mexico, 120–21

    • in Nigeria, 60–61

    • in Poland, 136–37, 142

    United States, 13

    United States Interagency Working Group on Social Cost of Carbon (2013), 146

    urban middle class, 28

    V

    VAT (value added tax)

    • Kenya and, 66

    • Philippines and, 81–82, 83

    • posttax subsidy estimates and, 8, 12f, 145, 147–48, 147n7

    • pretax subsidy estimates and, 144

    • Turkey and, 126

    W

    West Texas Intermediate (WTI) prices, 110

    World Bank, 68, 94, 96, 98

    World Food Program, 95–96

    Y

    Yemen, 27, 38

    • fuel prices and pass-through prices, 101f

    • macroeconomics and, 97t, 99f

    • petroleum product subsidies in, 96–102

    Yudhoyono, Susilo Bambang, 76, 78

    Z

    Zedillo administration, 120

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