An Evaluation of the 2014 Subsidy Reforms in Morocco and a Simulation of Further Reforms

Under increasing budget pressure, Morocco carried out an extensive set of subsidy reforms in 2014 and is planning for further reforms for 2015–2017, which will eliminate most consumers' subsidies. This paper evaluates (ex post) the 2014 reforms and simulates (ex ante) the impact on household welfare, poverty, and the government budget of the total elimination of subsidies. The paper considers food and energy subsidies and estimates direct and indirect effects using SUBSIM, a subsidies simulation model designed by the World Bank. It finds that the 2014 reforms have been a good mix of reforms from a distributional, welfare, poverty, and government budget perspectives. They are perhaps the most rational reforms undertaken in the Middle East and North Africa region in recent years. The analysis also finds further reforms costly for the poor and more complex from a political economy perspective, especially for liquefied petroleum gas.

Bibliographic Details

Main Authors:	Verme, Paolo, El-Massnaoui, Khalid
Format:	Publications & Research biblioteca
Language:	English en_US
Published:	World Bank Group, Washington, DC 2015-03
Subjects:	FUEL SUBSIDIES, LIQUID FUEL, RETAIL PRICE, CANE, OIL PRICE, PRICE STABILIZATION, PRICE INCREASES, STOCK, INCOME, INTEREST, ACTIVITIES, AVERAGE PRICES, GENERATION, EXCHANGE, COLLECTION SYSTEM, ENERGY SOURCE, INDEXATION, DOMESTIC MARKET, TREND, ELASTICITY, POLITICAL ECONOMY, GASOLINE, LIQUID FUELS, COAL COMPANY, PRICING, DOMESTIC PRICE, GAS, SUBSIDY, PRICE, TAX, SOCIAL COST, RAW SUGAR, AIR, INFLATION, TRANSPORT SERVICES, SELLING PRICE, RETAIL, OILS, PRICE STRUCTURE, OIL PRICES, PETROLEUM, SAVINGS, COSTS, OIL, TRANSPORT, PUBLIC FUNDS, PRODUCTION OF ELECTRICITY, SURPLUS, PRODUCTS, WATER, MARKETS, FUEL PRODUCTS, OIL IMPORTS, TRUE, SOCIAL PROTECTION, COMMERCIAL TRANSPORT, PRODUCT, INVENTORIES, INVENTORY, FUELS, SUBSIDIES, COMMODITY PRICE, LIBERALIZATION, FREIGHT COSTS, TAXES, FISCAL DEFICIT, EXPENDITURE, PRICE OF DIESEL, PRICING MECHANISM, DEREGULATION, ELECTRIC ENERGY, SURPLUSES, TRANSPORTATION, GOVERNMENT BUDGET, POLICIES, WHOLESALE PRICES, BALANCE, FINANCIAL CRISIS, FUTURE, UTILITIES, VALUE, COMPETITIVENESS, ELECTRICITY, CEMENT, PRICE OF OIL, DEMAND, TRANSPORT PROVISION, CONSUMER PRICE, PRICE CHANGES, EXPENDITURES, PETROLEUM GAS, ELECTRICITY TARIFFS, PRICE ADJUSTMENT, SALE, AVERAGE PRICE, OIL REFINING, SHARES, MARKET, RETAIL PRICES, PRICE INCREASE, PETROLEUM SECTOR, OUTPUT, PRICE MOVEMENTS, COST OF TRANSPORTATION, ELECTRICITY PRICES, TRADE, MARITIME TRANSPORT, AIR TRANSPORT, DOMESTIC PRICES, PRICE DIFFERENTIAL, INTERNATIONAL MARKET, GENERATION OF ELECTRICITY, INVESTMENT, FUEL PRICE, SHARE, COAL, TARIFF, FUEL, COMPETITIVE PRICES, CRUDE OIL, BORDER PRICES, FUEL OIL, INVESTMENTS, CONSUMER PRICES, COMMODITIES, TAXES ON GASOLINE, DEMOGRAPHIC, PETROLEUM PRODUCTS, ELECTRICITY PRODUCTION, DIESEL, BORDER PRICE, KEROSENE, EVAPORATION, COMMODITY, PRICE SUBSIDY, FREIGHT, PRICES, ENERGY, INCOME GROUPS, STORAGE, COMPETITION,
Online Access:	http://documents.worldbank.org/curated/en/2015/03/24220371/evaluation-2014-subsidy-reforms-morocco-simulation-further-reforms http://hdl.handle.net/10986/21672
Tags:	Add Tag No Tags, Be the first to tag this record!