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Balancing Act: Cutting Energy Subsidies While Protecting Affordability

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Caterina Ruggeri Laderchi, Anne Olivier, Chris Trimble
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This report assesses—at the micro level for the whole region—the distributional impact of raising energy tariffs to cost recovery levels and to simulate policy options to cushion these impacts. The assessment uses a database of standardized household surveys that covers the majority of countries in the region. This report adopts broad country groupings to identify commonalities across sub regions. It focuses on two main sources of energy used by households: electricity and gas.