G2TT
来源类型Energy Insight
规范类型报告
Is energy subsidy reform in an oil-exporting small economy beneficial to trade? Illustrations from Kuwait (Non Technical Summary)
Manal Shehabi
发表日期2019-01-31
出版年2019
页码1
语种英语
概述Although pervasive, subsidies have long been accepted by economists as a generally inefficient, costly means of resource allocation that leads to wasteful consumption and distortion of international trade and local markets. Oil-exporting economies have adopted energy pricing reform since the collapse of the oil price in mid-2014, despite lingering fears that such efforts would hurt […]
摘要Although pervasive, subsidies have long been accepted by economists as a generally inefficient, costly means of resource allocation that leads to wasteful consumption and distortion of international trade and local markets. Oil-exporting economies have adopted energy pricing reform since the collapse of the oil price in mid-2014, despite lingering fears that such efforts would hurt industries’ competitiveness internationally. The World Trade Organization (WTO), a proponent of subsidy reform, has advanced that had targeted effectuating subsidy reform through the use of trade rules.  Yet there is limited evidence on the linkages between trade and energy subsidy reform in the context of oil-exporting economies. This Insight gives a non-technical commentary of a paper which attempts to fill a gap in the literature by examining the impact of fossil fuel subsidy reform on trade (inflow and outflow) in an oil-producing, ‘almost’ small economy, focusing on the case of Kuwait. It employs a two-region economy-wide model with oligopoly behaviour to quantify the impact of Kuwaiti subsidy reform on trade. The model extends that of Shehabi (2017) by differentiating consumer- and industry-specific subsidy rates, and it also embodies unique elements of Kuwait’s economic structure (rigidities) and distortions in its industrial structure and labour market. The results show that the impacts of subsidy reform on trade are driven by existing idiosyncratic economic rigidities and distortions. Simulations clarify the fact that energy production subsidies have minimal effect on the international competitiveness of Kuwaiti non-energy sectors, due to the pervasiveness of oligopolies that sustain large markups and collusive pricing. As such, contrary to what the WTO’s polices suggest, the expansion of non-oil exports is constrained in its ability to moderate reform impacts in a low oil price environment due to institutional, political, and economic constraints. Yet with appropriate incentives, such dynamics could be considerably more effective—leading to potential expansion. Subsidy reforms have higher pro-trade effects if implemented in a low oil price environment because their negative effects are partially offset by efficiency gains and reduction in oligopoly markups. The analysis shows that in developing oil exporting economies characterized by pervasiveness of oligopolies, microeconomic reform can be a channel through which the pro-trade effects of energy subsidy reform can be achieved.  The results have great policy implications, including that organizations like the WTO should use benefits other than non-energy expansion to encourage oil economies to reform energy subsidies.
主题Country and Regional Studies ; Energy Economics ; Energy Policy ; Oil ; Oil & Middle East Programme
关键词CGE expatriate labour fossil fuel general equilibrium Kuwait oil exporter Oligopoly sovereign wealth fund Subsidy Trade
URLhttps://www.oxfordenergy.org/publications/energy-subsidy-reform-oil-exporting-small-economy-beneficial-trade-illustrations-kuwait/
来源智库Oxford Institute for Energy Studies (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/312615
推荐引用方式
GB/T 7714
Manal Shehabi. Is energy subsidy reform in an oil-exporting small economy beneficial to trade? Illustrations from Kuwait (Non Technical Summary). 2019.
条目包含的文件
文件名称/大小 资源类型 版本类型 开放类型 使用许可
Is-energy-subsidy-re(446KB)智库出版物 限制开放CC BY-NC-SA浏览
个性服务
推荐该条目
保存到收藏夹
导出为Endnote文件
谷歌学术
谷歌学术中相似的文章
[Manal Shehabi]的文章
百度学术
百度学术中相似的文章
[Manal Shehabi]的文章
必应学术
必应学术中相似的文章
[Manal Shehabi]的文章
相关权益政策
暂无数据
收藏/分享
文件名: Is-energy-subsidy-reform-in-an-oil-exporting-small-economy-beneficial-to-trade-non-technical-commentary-OIES-Energy-Insight-46.pdf
格式: Adobe PDF
此文件暂不支持浏览

除非特别说明,本系统中所有内容都受版权保护,并保留所有权利。