Leveraging Fuel Subsidy Reform for Transition in Yemen
Yemen is currently undergoing a major political transition, yet many economic challenges—including fuel subsidy reform—remain highly relevant. To inform the transition process with respect to a potential subsidy reform, we use a dynamic computable general equilibrium and microsimulation model for Yemen; we show that overall growth effects of subsidy reduction are positive in general, but poverty can increase or decrease depending on reform design. A promising strategy for a successful reform combines fuel subsidy reduction with direct income transfers to the poorest one-third of households during reform, and productivity-enhancing investment in infrastructure, plus fiscal consolidation. Public investments should be used for integrating economic spaces and restructuring of agricultural, industrial and service value chains in order to create a framework that encourages private-sector-led and job-creating growth.
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| Format: | Journal Article biblioteca |
| Language: | en_US |
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MDPI
2012-10-30
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| Subjects: | fuel subsidy reform, poverty, |
| Online Access: | http://hdl.handle.net/10986/23184 |
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dig-okr-10986231842021-04-23T14:04:13Z Leveraging Fuel Subsidy Reform for Transition in Yemen Breisinger, Clemens Engelke, Wilfried Ecker, Olivier fuel subsidy reform poverty Yemen is currently undergoing a major political transition, yet many economic challenges—including fuel subsidy reform—remain highly relevant. To inform the transition process with respect to a potential subsidy reform, we use a dynamic computable general equilibrium and microsimulation model for Yemen; we show that overall growth effects of subsidy reduction are positive in general, but poverty can increase or decrease depending on reform design. A promising strategy for a successful reform combines fuel subsidy reduction with direct income transfers to the poorest one-third of households during reform, and productivity-enhancing investment in infrastructure, plus fiscal consolidation. Public investments should be used for integrating economic spaces and restructuring of agricultural, industrial and service value chains in order to create a framework that encourages private-sector-led and job-creating growth. 2015-12-01T22:51:01Z 2015-12-01T22:51:01Z 2012-10-30 Journal Article Sustainability http://hdl.handle.net/10986/23184 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank MDPI Publications & Research :: Journal Article Publications & Research Middle East and North Africa Yemen, Republic of |
| institution |
Banco Mundial |
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Estados Unidos |
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| component |
Bibliográfico |
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| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
en_US |
| topic |
fuel subsidy reform poverty fuel subsidy reform poverty |
| spellingShingle |
fuel subsidy reform poverty fuel subsidy reform poverty Breisinger, Clemens Engelke, Wilfried Ecker, Olivier Leveraging Fuel Subsidy Reform for Transition in Yemen |
| description |
Yemen is currently undergoing a major political transition, yet many economic challenges—including fuel subsidy reform—remain highly relevant. To inform the transition process with respect to a potential subsidy reform, we use a dynamic computable general equilibrium and microsimulation model for Yemen; we show that overall growth effects of subsidy reduction are positive in general, but poverty can increase or decrease depending on reform design. A promising strategy for a successful reform combines fuel subsidy reduction with direct income transfers to the poorest one-third of households during reform, and productivity-enhancing investment in infrastructure, plus fiscal consolidation. Public investments should be used for integrating economic spaces and restructuring of agricultural, industrial and service value chains in order to create a framework that encourages private-sector-led and job-creating growth. |
| format |
Journal Article |
| topic_facet |
fuel subsidy reform poverty |
| author |
Breisinger, Clemens Engelke, Wilfried Ecker, Olivier |
| author_facet |
Breisinger, Clemens Engelke, Wilfried Ecker, Olivier |
| author_sort |
Breisinger, Clemens |
| title |
Leveraging Fuel Subsidy Reform for Transition in Yemen |
| title_short |
Leveraging Fuel Subsidy Reform for Transition in Yemen |
| title_full |
Leveraging Fuel Subsidy Reform for Transition in Yemen |
| title_fullStr |
Leveraging Fuel Subsidy Reform for Transition in Yemen |
| title_full_unstemmed |
Leveraging Fuel Subsidy Reform for Transition in Yemen |
| title_sort |
leveraging fuel subsidy reform for transition in yemen |
| publisher |
MDPI |
| publishDate |
2012-10-30 |
| url |
http://hdl.handle.net/10986/23184 |
| work_keys_str_mv |
AT breisingerclemens leveragingfuelsubsidyreformfortransitioninyemen AT engelkewilfried leveragingfuelsubsidyreformfortransitioninyemen AT eckerolivier leveragingfuelsubsidyreformfortransitioninyemen |
| _version_ |
1756574180350885888 |