Impacts on Poverty of Removing Fuel Import Subsidies in Nigeria

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Policy options for a socially balanced climate policy

“…Similarly, the direct effect of carbon prices is expected to be progressive in China (Brenner, Riddle, and Boyce 2007) and India (Datta 2010). Nevertheless, the direct effect of removing fossil fuel subsidies (without considering the alternative use of government revenues) can be very harmful to low-income households (Rao 2012;Siddig et al 2014).…”

“…In cases in which removing subsidies would increase inequality, a reform package can be designed such that budgetary savings are redistributed in a way that renders the overall outcome progressive (Siddig et al 2014;Dennis 2016). In addition, investing the public revenues freed by a subsidy reform to promote development goals, such as health, education, or access to basic infrastructure, also predominantly benefits poor household and can thus generate a "double progressivity".…”

The Equilibrium Analysis of Consumption and Imports of Soybean in Indonesia

“…According to Blanchard (2011), determinant of domestic imports are subject to domestic income or output and the exchange rate (Amiti, Itskhoki, & Konings, 2014;Anderson & Wittwer, 2013;Broz & Werfel, 2014;Siddig, Aguiar, Grethe, Minor, & Walmsley, 2014). Since domestic output in international trade was identity as well as in the consumption function, the theory and import function should also be in a reduced form (Miroudot, Sauvage, & Shepherd, 2013;Tombe, 2015).…”

Incidence and Impact

“…In one instant, the government removed subsidies on fossil fuel imports, thus causing domestic fuel prices to more than double. The extensive strikes and violent public protests that followed prompted the government to reintroduce the subsidies (Bazilian & Onyeji, 2012;Siddig et al, 2014). …”

“…Strikes and public protests followed, prompting the government to immediately reintroduce subsidies (Bazilian & Onyeji, 2012;Siddig et al, 2014). Similarly, governments of Bolivia (2010), Cameroon (2008), Venezuela (1989), and Yemen (2005 were all forced to abandon reform attempts following heavy public protests, particularly by low-income population groups (IEA, 2014;Segal, 2011).…”