Conventional wisdom holds that, without environmental benefits and revenue recycling, fossil fuel subsidies removal would lead to welfare losses. This study by P. Wesseh Jr. and B. Lin first tests the usefulness of general equilibrium theory for validating these claims and draws similar conclusions. Subsequently, the paper shows that the removal of fossil fuel subsidies can generate net benefits for Ghana when coupled with measures that increase agricultural productivity and lower transaction costs. Access to this paper is available to purchase on the ScienceDirect website.
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