Five takeaways from a decade of energy subsidy reforms in MENA
The phasing out of inefficient fossil fuel subsidies is a key part of the global climate change agenda as well as the Sustainable Development Goals (SDGs). Their negative environmental impacts and associated costs are well known. They lead to overconsumption, divert business to rent-seeking energy-intensive activities and drain government expenditure at the expense of public goods such as infrastructure, healthcare and education. Low energy prices also mainly benefit the wealthiest populations.
The MENA region is responsible for almost half of global energy consumption subsidies. Increases in energy prices put significant pressure on MENA social contracts as the benefits are generally not immediately tangible for the wider population.… Seguir leyendo »