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- W3204366946 abstract "Fossil fuel subsidies are widespread in developing countries, where reform efforts are often derailed by disputes over the likely distribution of gains and losses. The impacts of subsidy reform are transmitted to households through changes in energy prices and prices of other goods and services, as well as through factor earnings. Most empirical studies focus on consumer expenditures alone, and computable general equilibrium analyses typically report only total effects without decomposing them by source. Meanwhile, analytical models neglect important open-economy characteristics relevant to developing countries. In this paper, we develop an analytical model of a small open economy with a preexisting fossil fuel subsidy and identify direct and indirect impacts of subsidy reform on real household incomes. Our results, illustrated with data from Viet Nam, highlight two important drivers of distributional change: (i) the mix of tradable and nontradable goods, reflecting the structure of a trade-dependent economy; and (ii) household heterogeneity in sources of factor income." @default.
- W3204366946 created "2021-10-11" @default.
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- W3204366946 date "2018-09-01" @default.
- W3204366946 modified "2023-09-24" @default.
- W3204366946 title "Fossil Fuel Subsidy Reform in the Developing World: Who Wins, Who Loses, and Why?" @default.
- W3204366946 hasPublicationYear "2018" @default.
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