New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations

22 Pages Posted: 29 Jun 2015

See all articles by Andrea Gamba

Andrea Gamba

International Monetary Fund (IMF)

Date Written: May 2015

Abstract

Jordan’s initiatives to reduce its energy dependency could have substantial macroeconomic implications, but will crucially depend on the level of international oil prices in the next decade. Significant uncertainties remain regarding the feasibility of the initiatives and their potential fiscal costs, including from contingent liabilities, could be very large. Given the lead time required for such major investments, work should start now on: (i) conducting comprehensive cost-benefits analysis of these projects; (ii) addressing the challenges arising from the taxation of natural resources; and (iii) designing a fiscal framework to anchor fiscal policies if revenue from these energy projects materializes.

Keywords: Energy resources, Jordan, Fossil fuels, Oil prices, Fiscal policy, Natural resource taxation

JEL Classification: E61, E62, H44, Q40

Suggested Citation

Gamba, Andrea, New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations (May 2015). IMF Working Paper No. 15/115, Available at SSRN: https://ssrn.com/abstract=2623802

Andrea Gamba (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
21
Abstract Views
319
PlumX Metrics