Next Article in Journal
Strategic Environmental Assessment of Port Plans in Italy: Experiences, Approaches, Tools
Previous Article in Journal
Effect of Improving Environmental Sustainability in Developing Countries by Upgrading Solid Waste Management Techniques: A Case Study
Article Menu

Export Article

Open AccessArticle
Sustainability 2012, 4(11), 2862-2887; doi:10.3390/su4112862

Leveraging Fuel Subsidy Reform for Transition in Yemen

1
International Food Policy Research Institute, Development Strategy and Governance Division, 2033 K St, NW Washington, DC 20006-1002, USA
2
The World Bank, 1818 H Street, NW Washington, DC 20433, USA
*
Author to whom correspondence should be addressed.
Received: 28 September 2012 / Revised: 17 October 2012 / Accepted: 17 October 2012 / Published: 30 October 2012
View Full-Text   |   Download PDF [406 KB, uploaded 24 February 2015]   |  

Abstract

Yemen is currently undergoing a major political transition, yet many economic challenges—including fuel subsidy reform—remain highly relevant. To inform the transition process with respect to a potential subsidy reform, we use a dynamic computable general equilibrium and microsimulation model for Yemen; we show that overall growth effects of subsidy reduction are positive in general, but poverty can increase or decrease depending on reform design. A promising strategy for a successful reform combines fuel subsidy reduction with direct income transfers to the poorest one-third of households during reform, and productivity-enhancing investment in infrastructure, plus fiscal consolidation. Public investments should be used for integrating economic spaces and restructuring of agricultural, industrial and service value chains in order to create a framework that encourages private-sector-led and job-creating growth. View Full-Text
Keywords: fuel subsidy reform; development; poverty; Middle East; Northern Africa; Yemen fuel subsidy reform; development; poverty; Middle East; Northern Africa; Yemen
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

Share & Cite This Article

MDPI and ACS Style

Breisinger, C.; Engelke, W.; Ecker, O. Leveraging Fuel Subsidy Reform for Transition in Yemen. Sustainability 2012, 4, 2862-2887.

Show more citation formats Show less citations formats

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top