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    The Political Economy of Fossil Fuel Subsidies in the Middle East and North Africa

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    835_ Political_economy_fossil_fuel_subsidies_in_MENA.pdf (757.3Kb)
    Date
    2020-06-30
    Author
    Walsh, Alex
    Boys, Julian
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    Abstract
    This rapid review synthesises the academic and policy literature on the political economy of fossil fuel subsidies and their reform in ten selected countries in the Middle East and North African (MENA) region, namely Jordan, Lebanon, Tunisia, the Occupied Palestinian Territories (OPT), Iraq, Egypt, Yemen, Algeria, Syria and Morocco. From a political economy perspective, fossil fuel subsidies are redistributive rents with the underlying objective of maintaining social stability. Fossil fuel subsidies in MENA are mainly to consumption, and are high, both as a share of GDP, and compared to other world regions. The literature points to a number of ways to maximise the chance of reforms being successful: clear communication about the need for reforms is important, credible commitments to compensate losing groups and external factors such as low oil prices. The crisis provoked by the Covid-19 pandemic and concurrent low oil prices offers uncertain prospects for fossil fuel subsidies and their reform.
    URI
    https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/15493
    Citation
    Walsh, A and Boys, J. (2020). The political economy of fossil fuel subsidies in the Middle East and North Africa. K4D Helpdesk Report 835. Brighton, UK: Institute of Development Studies.
    Is part of series
    K4D Helpdesk Report;835
    Rights holder
    © DFID - Crown copyright 2020
    Rights details
    https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/
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    • K4D [935]

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