Fuel subsidy reform

Impacts of energy subsidies, the impacts of energy sector reform, and workable or appropriate mitigation measures associated with any reforms are extremely context specific. Nonetheless, strong evidence indicates that in many countries a significant proportion of subsidy benefits are captured by well-off households, suggesting a general phenomenon of energy subsidy inefficiency if the desired policy objective is to target income and energy access benefits to women and men living in poverty. 

This research project aims to investigate the impacts from fossil fuel subsidy reform on poor women in Bangladesh, India and Nigeria. This initial scoping report finds no primary, quantitative research on the question of the gender-differentiated impact of fossil fuel subsidy reforms.

The study measures actual subsidies such as direct transfers, tax exemptions, subsidized credit, and losses of state enterprises by different fuel types.

This information is intended to help countries better sequence and prioritize reforms. The study contributes to the international and national effort to develop knowledge to ensure reforms are well-planned, sustainable, and politically acceptable.