Cover IMF Working Papers
Buy Book in Print
Fuel Price Subsidies in Gabon: Fiscal Cost and Distributional Impact
Author:
Mr. Daniel Leigh
Search for other papers by Mr. Daniel Leigh in
Current site
Google Scholar Close
and
Moataz El-Said
Search for other papers by Moataz El-Said in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2006: Issue 243
Language:
English
Publication Date:
01 Oct 2006
DOI:
https://doi.org/10.5089/9781451865035.001
ISBN:
9781451865035
ISSN:
1018-5941
Pages:
15
Keywords:
WP; price; fuel price subsidy; Gabon; GDP
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (140 KB) Download Epub
This paper looks at the fiscal cost and distributional impact of implicit fuel price subsidies in Gabon, where fuel prices have remained largely unchanged since 2002. Using estimated implicit import parity prices, we evaluate the total fiscal cost of the subsidies at 3.2 percent of non-oil GDP in 2005-more than total public health expenditures. We also analyze the distribution of the subsidies using household survey data and find that the bulk of the subsidies benefit higher-income households. Finally, we suggest use of a number of existing programs to provide a more targeted and cost-effective means of protecting the real incomes of lower-income households from the effects of energy price increases.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund