Distributional Impacts of Energy Cross-Subsidization in Transition Economies

dc.creatorGrainger, Corbett
dc.creatorZhang, Fan
dc.creatorSchreiber, Andrew
dc.date2015-08-17T18:38:49Z
dc.date2015-08-17T18:38:49Z
dc.date2015-08
dc.date.accessioned2026-07-01T00:52:04Z
dc.descriptionSubsidies and cross-subsidies in the energy sector are common throughout Eastern Europe and Central Asia. In Belarus, revenues from an industrial tariff on electricity are used to cross-subsidize heating for households. Input-output (IO) data and a household consumption survey are used to analyze the distributional impacts of this cross-subsidization. This paper illustrates cost shares and electricity-intensity of different sectors and consumption categories and uses the IO data to obtain first-order estimates of the distributional incidence of policy reform. The paper then analyzes distributional impacts of subsidy reform with a Computable General Equilibrium model. Although poorer households benefit from reduced heating costs, the increase in prices of other consumer goods due to higher electricity prices more than offsets the benefits they receive from the subsidies. The analysis finds that the current cross-subsidies are regressive, and policy reform would be highly progressive.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2015/08/24879184/distributional-impacts-energy-cross-subsidization-transition-economies-evidence-belarus
dc.identifierhttps://hdl.handle.net/10986/22443
dc.identifier10.1596/1813-9450-7385
dc.identifier.urihttp://hdl.handle.net/123456789/412188
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;No. 7385
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectSUBSTITUTION
dc.subjectCUSTOMER
dc.subjectMULTIPLIERS
dc.subjectPRICE LEVELS
dc.subjectPRODUCTION
dc.subjectUTILITY FUNCTIONS
dc.subjectDISTRICT HEATING
dc.subjectINCOME
dc.subjectRATE OF RETURN
dc.subjectEQUILIBRIUM PRICE
dc.subjectHOUSEHOLD ANALYSIS
dc.subjectPERFECT COMPETITION
dc.subjectMARGINAL COST
dc.subjectEXCHANGE
dc.subjectCOST OF ELECTRICITY
dc.subjectINCOME GROUP
dc.subjectPRICING SCHEME
dc.subjectCONSUMER GOODS
dc.subjectDOMESTIC MARKET
dc.subjectEXPORTS
dc.subjectPRODUCTION INCREASES
dc.subjectELASTICITY
dc.subjectWELFARE
dc.subjectOPTIMIZATION
dc.subjectSUBSIDIZATION
dc.subjectEQUILIBRIUM
dc.subjectDISTRIBUTION
dc.subjectVARIABLES
dc.subjectDOMESTIC PRICE
dc.subjectFACTORS OF PRODUCTION
dc.subjectPRICING
dc.subjectSUBSIDY
dc.subjectPRICE
dc.subjectTAX
dc.subjectINPUTS
dc.subjectPAYMENTS
dc.subjectWEALTH
dc.subjectTRENDS
dc.subjectCOST OF FUNDS
dc.subjectSAVINGS
dc.subjectPRODUCTION STRUCTURE
dc.subjectCOSTS
dc.subjectOIL
dc.subjectPRODUCTION OF COKE
dc.subjectPRICING POLICY
dc.subjectRENT
dc.subjectECONOMIC COOPERATION
dc.subjectRESIDENTIAL ENERGY
dc.subjectOUTPUTS
dc.subjectPRODUCTS
dc.subjectOIL PRODUCTS
dc.subjectEXTERNALITIES
dc.subjectMARKETS
dc.subjectECONOMICS LITERATURE
dc.subjectINCOME LEVELS
dc.subjectPRODUCT
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectUTILITY
dc.subjectNATURAL RESOURCES
dc.subjectINVENTORY
dc.subjectCONSUMER DEMAND
dc.subjectEXPORT MARKET
dc.subjectFUELS
dc.subjectSUBSTITUTES
dc.subjectSUBSIDIES
dc.subjectREAL ESTATE
dc.subjectCONSUMER GROUPS
dc.subjectTAXES
dc.subjectPRICE CHANGE
dc.subjectEXPENDITURE
dc.subjectEQUILIBRIUM ANALYSIS
dc.subjectCONSUMPTION
dc.subjectVALUE ADDED
dc.subjectSUBSTITUTE
dc.subjectTAX RATE
dc.subjectCAPITAL
dc.subjectHEAT
dc.subjectCOST INCREASE
dc.subjectVALUE
dc.subjectELECTRICITY
dc.subjectPRODUCTION FUNCTIONS
dc.subjectDEMAND
dc.subjectSUPPLY COSTS
dc.subjectFOSSIL FUEL
dc.subjectINTERMEDIATE GOODS
dc.subjectPRICE CHANGES
dc.subjectAGRICULTURE
dc.subjectCONSUMERS
dc.subjectEXPENDITURES
dc.subjectINCOMES
dc.subjectTAX RATES
dc.subjectCONSUMER GOOD
dc.subjectSHARES
dc.subjectMARKET
dc.subjectBENCHMARK
dc.subjectFOREIGN EXCHANGE
dc.subjectENERGY PRICES
dc.subjectPRODUCTION FUNCTION
dc.subjectCAPITAL RETURNS
dc.subjectECONOMIC SYSTEMS
dc.subjectOUTPUT
dc.subjectELECTRICITY PRICES
dc.subjectFUNCTIONAL FORMS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectTRADE
dc.subjectGOODS
dc.subjectTHEORY
dc.subjectGENERAL EQUILIBRIUM ANALYSIS
dc.subjectSHARE
dc.subjectDEVELOPING ECONOMY
dc.subjectTARIFF
dc.subjectSUPPLY
dc.subjectBANKING
dc.subjectFUEL
dc.subjectREVENUE
dc.subjectEQUILIBRIUM PRICES
dc.subjectCONSUMER PRICES
dc.subjectCOMMUNICATION
dc.subjectTRANSITION ECONOMIES
dc.subjectCOMMODITIES
dc.subjectBENCHMARK DATA
dc.subjectTOTAL OUTPUT
dc.subjectCUSTOMERS
dc.subjectPRICE INDEX
dc.subjectCOMMODITY
dc.subjectINTERNATIONAL MARKETS
dc.subjectFOSSIL
dc.subjectAPPROACH
dc.subjectPRICES
dc.subjectENERGY PRICE
dc.subjectECONOMIC STATISTICS
dc.subjectPRODUCTION COSTS
dc.subjectENERGY
dc.subjectDEVELOPMENT POLICY
dc.subjectINCOME GROUPS
dc.subjectCOMPETITION
dc.titleDistributional Impacts of Energy Cross-Subsidization in Transition Economies
dc.titleEvidence from Belarus
dc.typeWorking Paper
dc.typeDocument de travail
dc.typeDocumento de trabajo

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