Managing the distributional effects of energy taxes and subsidy removal in Latin America and the Caribbean

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14230%2F18%3A00105390" target="_blank" >RIV/00216224:14230/18:00105390 - isvavai.cz</a>
Result on the web
<a href="https://www.sciencedirect.com/science/article/pii/S0306261918306834#" target="_blank" >https://www.sciencedirect.com/science/article/pii/S0306261918306834#</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.apenergy.2018.04.116" target="_blank" >10.1016/j.apenergy.2018.04.116</a>

Result language
angličtina
Original language name
Managing the distributional effects of energy taxes and subsidy removal in Latin America and the Caribbean
Original language description
Energy subsidies have been criticized due to their economic inefficiency and promotion of wasteful usage of energy and associated carbon emissions. Conversely, environmental taxes are advocated as efficient policy instruments. But removing subsidies and taxing energy can be politically challenging because vulnerable households rely on low energy prices. This study analyzes the impact of energy price hikes on different income groups using an energy-extended input-output approach. Our results show that higher-income groups benefit more from low energy prices than low-income groups when tracing both direct and indirect (supply chain) effects of energy price variations. Energy subsidies are a very expensive option to transfer income to poor households. For example, in Latin America and the Caribbean, using energy subsidies would cost about $12 to transfer $1 of income to households in the poorest quintile. Recycling a small fraction of fiscal revenues from energy subsidy removal or energy taxation could be sufficient to compensate vulnerable households from the effects of price hikes. Cash transfers to poor households and targeted subsidies for public transportation or food are the most effective measures to compensate households for welfare loss.
Czech name
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Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50704 - Environmental sciences (social aspects)

Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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