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Energy Subsidies and Energy Consumption :, A Cross-Country Analysis, Joshua Charap, Arthur Ribeiro da Silva, Pedro Rodriguez

The economic and environmental implications of energy subsidies have received renewed attention from policymakers and economists in recent years. Nevertheless there remains significant uncertainty regarding the magnitude of the impact of energy subsidies on energy consumption. In this paper we analyze a panel of cross-country data to explore the responsiveness of energy consumption to changes in energy prices and the implications of our findings for the debate on energy subsidy reform. Our findings indicate a long-term price elasticity of energy demand between -0.3 and -0.5, which suggests that countries can reap significant long-term benefits from the reform of energy subsidies. Our findings also indicate that short-term gains from subsidy reform are likely to be much smaller, which suggests the need for either a gradual approach to subsidy reform or for more generous safety nets in the short term
Table Of Contents
Cover; Contents; I. Introduction; II. Responsiveness of Energy Consumption to Energy Prices-Findings in the Empirical Literature; Tables; 1. Income and Price Elasticities of Energy Demand: Literature Review; III. Reexamining the (Long-term) Price Elasticity of Energy Consumption; Figures; 1. Energy Consumption and Gasoline Prices, 2010; 2. Log of Share of Energy Consumption to (real) GDP and Log of Real Gasoline Prices in a Sample of 66 Countries, 2002-10; IV. Estimation Results; 2. Estimating Energy Demand-Baseline Estimations
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (21 p.)
Specific Material Designation
Form Of Item

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