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The quest for subsidies reforms in the Middle East and North Africa Region : a microsimulation approach to policy making (English)

The book is organized in two parts and ten chapters. Part one, Cross-Country Analyses, covers the comparative analyses across countries. Chapter one provides a synthesis of what we learned about subsidies reforms from a political economy perspective. Chapter two provides a comparative analysis of subsidies and subsidies reforms across countries in U.S. dollars at purchasing power parity (PPP) values. Using the same data used by the country studies, this chapter shows the relative importance of subsidies across countries and income groups and the main winners and losers of subsidy reforms. Part two, Country Case Studies, includes the country-specific analyses. All of the chapters in this part were developed along a similar structure with an introduction, followed by a brief history of subsidies, and then the distributional analysis of subsidies, simulations of subsidies reforms, the political economy of reforms, and a conclusion. All chapters are based on primary microdata and macrodata, and each chapter provides two simulations of reforms. The first simulation was chosen based on what was deemed more relevant for the policy dialogue at the time of preparing the chapters. The second simulation is standard across all chapters and includes the full elimination of subsidies. The book includes as an appendix the User Manual for SUBSIM that illustrates the use of the model and provides all formulas used for the estimations throughout the book.


  • Author

    Verme,Paolo, Araar,Abdelkrim

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    Working Paper

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  • Country

    Middle East and North Africa,

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    Middle East and North Africa,

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    The quest for subsidies reforms in the Middle East and North Africa Region : a microsimulation approach to policy making

  • Keywords

    Energy and Extractives Practice;baseline information;poverty and social impact analysis;elimination of subsidy;poverty impact;retail petroleum product;impact of energy reform;political economy of reform;Electricity Tariff Structure;Poverty & Inequality;total public spending;social safety net development;energy and climate change;Energy Policies & Reform;reduction in government expenditure;reduction in subsidies;household budget survey;cross-country analyses;Poverty and Equity;Computable General Equilibrium;consumer price index;liquefied petroleum gas;types of consumer;purchasing power parity;human development indicator;cash transfer program;expenditures on fuel;international poverty line;social risk management;expenditures on electricity;poverty alleviation program;experimental impact evaluation;social protection system;removal of subsidy;household labor supply;natural gas bill;case of electricity;public information campaign;compressed natural gas;removal of tax;increase in prices;foreign direct investment;heavy fuel oil;barrels per day;poverty gap index;issues of production;cost of production;reform household;distribution of subsidies;social protection policy;expenditure per capita;domestic consumption tax;social accounting matrix;gdp growth rate;distribution of expenditure;poverty head count;number of cars;gains and losses;Social Safety Nets;areas of specialization;energy efficiency programs;poverty and conflict;inequality of opportunity;measurement of inequality;macroeconomic and fiscal;subsidized products;energy subsidies;energy product;



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Verme,Paolo Araar,Abdelkrim

The quest for subsidies reforms in the Middle East and North Africa Region : a microsimulation approach to policy making (English). Author accepted manuscript Washington, D.C. : World Bank Group.