Distributional Effects of Oil Price Changes on Household Expenditures

Distributional Effects of Oil Price Changes on Household Expenditures

Evidence From Mali

eBook - 2006
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Using an input-output approach, this paper assesses the distributional effects of a rise in various petroleum product prices in Mali. The results show that, although rising gasoline and diesel prices affect mainly nonpoor households, rising kerosene prices are most harmful to the poor. Overall, the impact of fuel prices on household budgets displays a U-shaped relationship with expenditure per capita. Regardless of the oil product considered, highincome households would benefit disproportionately from oil price subsidies. This suggests that a petroleum price subsidy is an ineffective mechanism for protecting the income of poor households compared with a targeted subsidy.
Publisher: Washington : International Monetary Fund, 2006
Copyright Date: ©2006
ISBN: 9781451908862
9781451863512
Branch Call Number: Electronic book
Characteristics: 1 online resource (33 pages)
Additional Contributors: ProQuest (Firm)

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