Energy Subsidies in Latin America and the Caribbean : Stocktaking and Policy Challenges

The oil price decline creates an opportunity to dismantle energy subsidies, which escalated with high oil prices. This paper assesses energy subsidies in Latin America and the Caribbean-about 1.8 percent of GDP in 2011-13 (approximately evenly split between fuel and electricity), and about 3.8 perce...

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Main Author: Di Bella, Gabriel
Other Authors: Norton, Lawrence, Ntamatungiro, Joseph, Ogawa, Sumiko
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2015, 2015
Series:IMF Working Papers; Working Paper
Subjects:
Oil
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Summary:The oil price decline creates an opportunity to dismantle energy subsidies, which escalated with high oil prices. This paper assesses energy subsidies in Latin America and the Caribbean-about 1.8 percent of GDP in 2011-13 (approximately evenly split between fuel and electricity), and about 3.8 percent of GDP including negative externalities. Countries with poorer institutions subsidize more. Energy-rich countries subsidize fuel more, but low-income countries are more likely to subsidize electricity, as are Central America and the Caribbean. Energy subsidies impose fiscal costs, hurting SOEs, competitiveness, and distribution. The paper overviews country experience with subsidy reform, drawing lessons
Physical Description:79 p.
ISBN:1484365364
9781484365366