Fuel Price Subsidies in Gabon: Fiscal Cost and Distributional Impact
International Monetary Fund (IMF)
Moataz El Said
International Monetary Fund (IMF) - Fiscal Affairs Department
IMF Working Paper No. 06/243
This paper looks at the fiscal cost and distributional impact of implicit fuel price subsidies in Gabon, where fuel prices have remained largely unchanged since 2002. Using estimated implicit import parity prices, we evaluate the total fiscal cost of the subsidies at 3.2 percent of non-oil GDP in 2005 - more than total public health expenditures. We also analyze the distribution of the subsidies using household survey data and find that the bulk of the subsidies benefit higher-income households. Finally, we suggest use of a number of existing programs to provide a more targeted and cost-effective means of protecting the real incomes of lower-income households from the effects of energy price increases.
Number of Pages in PDF File: 17
Keywords: Fuel-price subsidies, Gabon, income distribution
JEL Classification: H20, H22, H23working papers series
Date posted: November 13, 2006
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 3.906 seconds