Estimating the Size of External Effects of Energy Subsidies in Transport and Agriculture

It is widely accepted that the costs of underpricing energy are large, whether in advanced or developing countries. This paper explores how large these costs can be by focussing on the size of the external effects that energy subsidies in particular generate in two important sectors—transport and agriculture—in two countries in the Middle East and North Africa, the Arab Republic of Egypt (transport) and the Republic of Yemen (agriculture). The focus is mainly on the costs associated with congestion and pollution, as well as the impact of underpriced energy for depletion of scarce water resources, including through crop selection. Quantifying the size of external effects in developing countries has received relatively little analytical attention, although there is a significant body of literature for developed countries. By building on earlier research, as well as employing the United Nations ForFITS model, the paper provides indicative estimates of the external costs of energy subsidies, as manifested in congestion and pollution. The estimates using simulations indicate that these costs could be materially reduced by elimination or reduction of energy subsidies. The paper also describes the impact of energy subsidies on water consumption in a region where water resources are particularly limited. The findings provide further evidence of the adverse and significant consequences of subsidizing energy.

Bibliographic Details

Main Authors:	Commander, Simon, Nikoloski, Zlatko, Vagliasindi, Maria
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank Group, Washington, DC 2015-04
Subjects:	POLLUTION COSTS, POPULATION DENSITIES, FUEL PRICE INCREASE, PUBLIC TRANSIT, TRANSPORT SECTOR, FUEL PRICE INCREASES, COST OF TRAVEL, CARBON DIOXIDE, FOSSIL FUELS, PASSENGERS, ROAD ACCIDENTS, ENVIRONMENTAL COSTS, CAR OWNERSHIP, ELASTICITY, GASOLINE, JOURNEY, VEHICLE OWNERSHIP, TOLL, VEHICLE CLASS, COSTS OF CONGESTION, TYPE OF TRANSPORT, AIR, TRANSPORT PRICING, GREENHOUSE GAS, VEHICLE CLASSES, TRANSPORT SERVICES, UNDERGROUND, MODAL CHOICE, TRANSPORT MODES, TRAVEL COSTS, FUEL ECONOMY, CRASHES, AIR POLLUTION, ELASTICITIES OF ROAD TRAFFIC, ELASTICITIES OF VEHICLE TRAVEL, URBAN TRIPS, TRANSPORT SYSTEMS, EFFICIENT VEHICLES, VEHICLE MILES, VEHICLE EMISSIONS, FUEL USE, FUEL PRICE ELASTICITIES, EXTERNALITIES, VEHICLE TYPES, URBAN BUSES, TRIPS, HIGH ENERGY, DRAINAGE, TRAVEL SURVEY, PRICE ELASTICITY, TRANSPORT DATA, GAS EMISSIONS, FUEL TAXES, FUELS, FUEL COSTS, SUBSIDIES, INFRASTRUCTURE, LAND USE, LONG RUN ELASTICITY, BUSES, PRIVATE VEHICLES, VEHICLE FUEL ECONOMY, TRANSPORT NETWORK, EMISSION, CONGESTION, DRIVING, TRANSPORTATION, FUEL EFFICIENCY, AIR POLLUTION DEATHS, POLICIES, MARGINAL EXTERNAL COSTS, TRUCKS, PRICE ELASTICITIES, PUBLIC TRANSPORT NETWORK, CARS, TRADING PATTERNS, ACCESSIBILITY, TRUCK USE, PRICE CHANGES, EMISSION FACTORS, PETROLEUM GAS, FUEL PRICES, PASSENGERS AS WELL, PUBLIC TRANSPORT INFRASTRUCTURE, COSTS OF FUEL, URBAN MOBILITY, VEHICLE EFFICIENCY, FUEL TAX, RAILWAY, MINISTRY OF TRANSPORT, CAR, WALKING, TRANSPORT TECHNOLOGIES, VEHICLE FUEL, VEHICLE COST, COST OF TRANSPORT, TRANSPORT ACTIVITY, DIESEL FUEL, RAIL, FUEL, MOTOR VEHICLE AIR POLLUTION, TRIP, CONGESTION COST, TRANSPORT DEMAND, TRANSPORT SYSTEM, VEHICLE REGISTRATIONS, VEHICLE AIR POLLUTION, DIESEL, ROAD TRANSPORT, TRAVEL TIME, TRANSPORT POLICIES, FUEL COST, FREIGHT, ROAD TRAFFIC, URBAN TRANSPORT, LONG-DISTANCE TRAVEL, FUEL SUBSIDIES, AUTOMOBILE, FUEL-EFFICIENT VEHICLES, TRAFFIC CONGESTION, PRICE OF FUEL, ROAD DEATHS, TRANSPORT SERVICE, ENVIRONMENTAL DEGRADATION, GREENHOUSE GAS EMISSIONS, VEHICLE TRAVEL ELASTICITY, TRANSPORT INFRASTRUCTURE, VEHICLES, FREIGHT TRANSPORT, TRANSPORTATION RESEARCH, EMISSIONS, TRANSIT BENEFITS, GASOLINE CONSUMPTION, FATAL INJURIES, LORRIES, POLLUTANT EMISSIONS, SUBSIDY, TRAFFIC, TAX, GAS CONSUMPTION, PUBLIC TRANSPORT MODES, VEHICLE USE, MOTOR VEHICLE OWNERSHIP, TRAFFIC VOLUME, SPEEDS, TRAFFIC MANAGEMENT, VEHICLE, VEHICLE TRAVEL, ROAD, TRANSPORT ECONOMICS, COSTS, CAR OCCUPANCY, LAND USE ACCESSIBILITY, ELASTICITY OF VEHICLE TRAVEL, ROAD SECTOR, TRANSPORT, POPULATION GROWTH, LONG-DISTANCE, CONGESTION CHARGING, MODE OF TRANSPORT, MOBILITY, TRAVEL DEMAND, ROAD INJURIES, MODES OF TRANSPORT, POLLUTION, EXHAUST EMISSIONS, PRICE SENSITIVITY, FUEL CONSUMPTION, TRAFFIC ACCIDENTS, INJURY, GASOLINE PRICE, TAXES, PRICE CHANGE, ENERGY CONSUMPTION, VEHICLE USAGE, TRAVEL, COST OF CONGESTION, TRANSIT, CLIMATE CHANGE, VEHICLE FLEET, ROAD SAFETY, CONGESTION COSTS, EXCESS FUEL CONSUMPTION, ELASTICITIES, MOTOR VEHICLE, TAX SUBSIDIES, MOTOR VEHICLES, PUBLIC TRANSPORT, ODOMETER, SIGNALS, MODAL CHOICES, PRICE SENSITIVITIES, VEHICLE FUEL EFFICIENCY, HIGHWAY ADMINISTRATION, HIGHWAY, GASOLINE TAXES, RAILWAYS, INLAND TRANSPORT, FUEL PRICE, VEHICLE KILOMETERS, ACCIDENTS, FUEL OIL, INVESTMENTS, COSTS OF TRANSPORT, PEDESTRIANS, LONG-RUN ELASTICITIES, NOISE, SAFETY, PASSENGER TRANSPORT,
Online Access:	http://documents.worldbank.org/curated/en/2015/04/24249970/ https://hdl.handle.net/10986/21674
Tags:	Add Tag No Tags, Be the first to tag this record!