Energy subsidy reforms and the impacts on firms: Transmission channels and response measures

While the adverse effects of energy price increases following reforms are increasingly well understood for households, the existing literature has largely ignored the effect of subsidy reform on firms. This paper argues that this is a gap in the evidence base that must be addressed, in order to design and deliver reforms more effectively. In particular, attention must be paid to all the transmission channels for price shocks, as well as the available response measures. Only a full evaluation of these aspects can enable policy makers to make an informed assessment of the likely consequences of subsidy removal on economic activity and competitiveness. This paper outlines the most important transmission channels for energy price shocks and the response measures used by firms.

By: Jun Rentschler , Martin Kornejew

Latest Tweets from @OxfordEnergy

  • New OIES study on China’s use of Natural Gas, LNG to tackle air pollution: As of August 2018, China had 18 receivin… https://t.co/XIqu9VqDxT

    December 11th

  • New OIES study on China’s use of natural gas and LNG to tackle air pollution: Natural gas has witnessed growth in a… https://t.co/s0ZlK3iQAp

    December 11th

  • The Outlook for Natural Gas and LNG in China in the War against Air Pollution https://t.co/8whN19JPBl

    December 10th

Sign up for our Newsletter

Register your email address here and we will send you notification of new publications, comment, articles etc. automatically.