Energy subsidy reform – Difficult yet progressing (Asamoah, Hanedar and Shang)
Despite a growing consensus in favour of reform of costly and environmentally damaging energy price subsidies, many countries remain resistant. This VOX column by A. Asamoah, E. Hanedar and B. Shang of the IMF takes stock of recent developments using an updated energy price database. Environmental concerns seem to be playing a larger role in driving reform, but most reforming countries are facing large fiscal imbalances. These countries may need additional, deeper measures for the reforms to last. To read the column, please visit the VOX website.