Petroleum Subsidies in Yemen : Leveraging Reform for Development

Breisinger, Clemens ; Engelke, Wilfried ; Ecker, Olivier

关键词: ADVERSE IMPACT;    AGRICULTURAL ECONOMICS;    AGRICULTURAL GROWTH;    AGRICULTURAL PRODUCTION;    AGRICULTURAL SECTOR;   

DOI  :  10.1596/1813-9450-5577
RP-ID  :  WPS5577

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Petroleum subsidy reform is increasinglyseen as an opportunity for consolidating public finances andfostering sustainable economic development. Yemen, as thecountry with the lowest per capita income in the group ofcountries with a high level of energy subsidies, started toreduce subsidies in 2010 and is discussing further optionsfor reform. The results of this paper support acomprehensive petroleum subsidy reform in Yemen. Economicgrowth is projected to accelerate between 0.1 and 0.8percentage points annually as a result of reform. Yet, thedesign of the reform is critically important, especially forthe poor. Outcomes of alternative reform scenarios rangefrom an increase in poverty of 2 to 6 percentage points. Apromising strategy combines subsidy reduction with directtransfers of 13,800 to 19,700 Yemeni rials annually to thepoorest 30 percent of households and enhanced publicinvestments. Investments should focus on the utilities,transport, trade, and construction sectors to integrateeconomic spaces and create the platform for a restructuringof agricultural, industrial, and service value chains, whichshould encourage private sector led and job creating growthin the medium term.