Target Audience: Mid- to senior-level officials at the Ministry of Finance or other ministries or government agencies (e.g., Ministry of Energy; Ministry for Social protection) involved in the determination of energy prices and reform strategies.
Course Description: This course will discuss the definition and estimation of energy subsidies, and describe recent developments in the magnitude and composition of energy subsidies both globally and regionally. It will discuss the macroeconomic, fiscal, environmental and social implications of energy subsidies. Important challenges governments face when implementing energy subsidy reform will be identified and, building on country specific case studies, the course will elaborate on key ingredients for successful reforms, including targeted mitigating measures to protect low-income households and energy-intensive sectors adversely affected by energy price increases. The course also disseminate tools for measuring subsidies, assessing the welfare and distributional impact of energy price reforms, and alternative designs of energy pricing mechanisms including with smoothing mechanisms.