Estimating the Size of External Effects of Energy Subsidies in Transport and Agriculture

It is widely accepted that the costs of underpricing energy are large, whether in advanced or developing countries. This paper explores how large these costs can be by focussing on the size of the external effects that energy subsidies in particula...

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Main Authors: Commander, Simon, Nikoloski, Zlatko, Vagliasindi, Maria
Format: Working Paper
Language:English
en_US
Published: World Bank Group, Washington, DC 2015
Subjects:
AIR
CAR
TAX
Online Access:http://documents.worldbank.org/curated/en/2015/04/24249970/
http://hdl.handle.net/10986/21674
id okr-10986-21674
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic POLLUTION COSTS
POPULATION DENSITIES
FUEL PRICE INCREASE
PUBLIC TRANSIT
TRANSPORT SECTOR
FUEL PRICE INCREASES
COST OF TRAVEL
CARBON DIOXIDE
FOSSIL FUELS
PASSENGERS
ROAD ACCIDENTS
ENVIRONMENTAL COSTS
CAR OWNERSHIP
ELASTICITY
GASOLINE
JOURNEY
VEHICLE OWNERSHIP
TOLL
VEHICLE CLASS
COSTS OF CONGESTION
TYPE OF TRANSPORT
AIR
TRANSPORT PRICING
GREENHOUSE GAS
VEHICLE CLASSES
TRANSPORT SERVICES
UNDERGROUND
MODAL CHOICE
TRANSPORT MODES
TRAVEL COSTS
FUEL ECONOMY
CRASHES
AIR POLLUTION
ELASTICITIES OF ROAD TRAFFIC
ELASTICITIES OF VEHICLE TRAVEL
URBAN TRIPS
TRANSPORT SYSTEMS
EFFICIENT VEHICLES
VEHICLE MILES
VEHICLE EMISSIONS
FUEL USE
FUEL PRICE ELASTICITIES
EXTERNALITIES
VEHICLE TYPES
URBAN BUSES
TRIPS
HIGH ENERGY
DRAINAGE
TRAVEL SURVEY
PRICE ELASTICITY
TRANSPORT DATA
GAS EMISSIONS
FUEL TAXES
FUELS
FUEL COSTS
SUBSIDIES
INFRASTRUCTURE
LAND USE
LONG RUN ELASTICITY
BUSES
PRIVATE VEHICLES
VEHICLE FUEL ECONOMY
TRANSPORT NETWORK
EMISSION
CONGESTION
DRIVING
TRANSPORTATION
FUEL EFFICIENCY
AIR POLLUTION DEATHS
POLICIES
MARGINAL EXTERNAL COSTS
TRUCKS
PRICE ELASTICITIES
PUBLIC TRANSPORT NETWORK
CARS
TRADING PATTERNS
ACCESSIBILITY
TRUCK USE
PRICE CHANGES
EMISSION FACTORS
PETROLEUM GAS
FUEL PRICES
PASSENGERS AS WELL
PUBLIC TRANSPORT INFRASTRUCTURE
COSTS OF FUEL
URBAN MOBILITY
VEHICLE EFFICIENCY
FUEL TAX
RAILWAY
MINISTRY OF TRANSPORT
CAR
WALKING
TRANSPORT TECHNOLOGIES
VEHICLE FUEL
VEHICLE COST
COST OF TRANSPORT
TRANSPORT ACTIVITY
DIESEL FUEL
RAIL
FUEL
MOTOR VEHICLE AIR POLLUTION
TRIP
CONGESTION COST
TRANSPORT DEMAND
TRANSPORT SYSTEM
VEHICLE REGISTRATIONS
VEHICLE AIR POLLUTION
DIESEL
ROAD TRANSPORT
TRAVEL TIME
TRANSPORT POLICIES
FUEL COST
FREIGHT
ROAD TRAFFIC
URBAN TRANSPORT
LONG-DISTANCE TRAVEL
FUEL SUBSIDIES
AUTOMOBILE
FUEL-EFFICIENT VEHICLES
TRAFFIC CONGESTION
PRICE OF FUEL
ROAD DEATHS
TRANSPORT SERVICE
ENVIRONMENTAL DEGRADATION
GREENHOUSE GAS EMISSIONS
VEHICLE TRAVEL ELASTICITY
TRANSPORT INFRASTRUCTURE
VEHICLES
FREIGHT TRANSPORT
TRANSPORTATION RESEARCH
EMISSIONS
TRANSIT BENEFITS
GASOLINE CONSUMPTION
FATAL INJURIES
LORRIES
POLLUTANT EMISSIONS
SUBSIDY
TRAFFIC
TAX
GAS CONSUMPTION
PUBLIC TRANSPORT MODES
VEHICLE USE
MOTOR VEHICLE OWNERSHIP
TRAFFIC VOLUME
SPEEDS
TRAFFIC MANAGEMENT
VEHICLE
VEHICLE TRAVEL
ROAD
TRANSPORT ECONOMICS
COSTS
CAR OCCUPANCY
LAND USE ACCESSIBILITY
ELASTICITY OF VEHICLE TRAVEL
ROAD SECTOR
TRANSPORT
POPULATION GROWTH
LONG-DISTANCE
CONGESTION CHARGING
MODE OF TRANSPORT
MOBILITY
TRAVEL DEMAND
ROAD INJURIES
MODES OF TRANSPORT
POLLUTION
EXHAUST EMISSIONS
PRICE SENSITIVITY
FUEL CONSUMPTION
TRAFFIC ACCIDENTS
INJURY
GASOLINE PRICE
TAXES
PRICE CHANGE
ENERGY CONSUMPTION
VEHICLE USAGE
TRAVEL
COST OF CONGESTION
TRANSIT
CLIMATE CHANGE
VEHICLE FLEET
ROAD SAFETY
CONGESTION COSTS
EXCESS FUEL CONSUMPTION
ELASTICITIES
MOTOR VEHICLE
TAX SUBSIDIES
MOTOR VEHICLES
PUBLIC TRANSPORT
ODOMETER
SIGNALS
MODAL CHOICES
PRICE SENSITIVITIES
VEHICLE FUEL EFFICIENCY
HIGHWAY ADMINISTRATION
HIGHWAY
GASOLINE TAXES
RAILWAYS
INLAND TRANSPORT
FUEL PRICE
VEHICLE KILOMETERS
ACCIDENTS
FUEL OIL
INVESTMENTS
COSTS OF TRANSPORT
PEDESTRIANS
LONG-RUN ELASTICITIES
NOISE
SAFETY
PASSENGER TRANSPORT
spellingShingle POLLUTION COSTS
POPULATION DENSITIES
FUEL PRICE INCREASE
PUBLIC TRANSIT
TRANSPORT SECTOR
FUEL PRICE INCREASES
COST OF TRAVEL
CARBON DIOXIDE
FOSSIL FUELS
PASSENGERS
ROAD ACCIDENTS
ENVIRONMENTAL COSTS
CAR OWNERSHIP
ELASTICITY
GASOLINE
JOURNEY
VEHICLE OWNERSHIP
TOLL
VEHICLE CLASS
COSTS OF CONGESTION
TYPE OF TRANSPORT
AIR
TRANSPORT PRICING
GREENHOUSE GAS
VEHICLE CLASSES
TRANSPORT SERVICES
UNDERGROUND
MODAL CHOICE
TRANSPORT MODES
TRAVEL COSTS
FUEL ECONOMY
CRASHES
AIR POLLUTION
ELASTICITIES OF ROAD TRAFFIC
ELASTICITIES OF VEHICLE TRAVEL
URBAN TRIPS
TRANSPORT SYSTEMS
EFFICIENT VEHICLES
VEHICLE MILES
VEHICLE EMISSIONS
FUEL USE
FUEL PRICE ELASTICITIES
EXTERNALITIES
VEHICLE TYPES
URBAN BUSES
TRIPS
HIGH ENERGY
DRAINAGE
TRAVEL SURVEY
PRICE ELASTICITY
TRANSPORT DATA
GAS EMISSIONS
FUEL TAXES
FUELS
FUEL COSTS
SUBSIDIES
INFRASTRUCTURE
LAND USE
LONG RUN ELASTICITY
BUSES
PRIVATE VEHICLES
VEHICLE FUEL ECONOMY
TRANSPORT NETWORK
EMISSION
CONGESTION
DRIVING
TRANSPORTATION
FUEL EFFICIENCY
AIR POLLUTION DEATHS
POLICIES
MARGINAL EXTERNAL COSTS
TRUCKS
PRICE ELASTICITIES
PUBLIC TRANSPORT NETWORK
CARS
TRADING PATTERNS
ACCESSIBILITY
TRUCK USE
PRICE CHANGES
EMISSION FACTORS
PETROLEUM GAS
FUEL PRICES
PASSENGERS AS WELL
PUBLIC TRANSPORT INFRASTRUCTURE
COSTS OF FUEL
URBAN MOBILITY
VEHICLE EFFICIENCY
FUEL TAX
RAILWAY
MINISTRY OF TRANSPORT
CAR
WALKING
TRANSPORT TECHNOLOGIES
VEHICLE FUEL
VEHICLE COST
COST OF TRANSPORT
TRANSPORT ACTIVITY
DIESEL FUEL
RAIL
FUEL
MOTOR VEHICLE AIR POLLUTION
TRIP
CONGESTION COST
TRANSPORT DEMAND
TRANSPORT SYSTEM
VEHICLE REGISTRATIONS
VEHICLE AIR POLLUTION
DIESEL
ROAD TRANSPORT
TRAVEL TIME
TRANSPORT POLICIES
FUEL COST
FREIGHT
ROAD TRAFFIC
URBAN TRANSPORT
LONG-DISTANCE TRAVEL
FUEL SUBSIDIES
AUTOMOBILE
FUEL-EFFICIENT VEHICLES
TRAFFIC CONGESTION
PRICE OF FUEL
ROAD DEATHS
TRANSPORT SERVICE
ENVIRONMENTAL DEGRADATION
GREENHOUSE GAS EMISSIONS
VEHICLE TRAVEL ELASTICITY
TRANSPORT INFRASTRUCTURE
VEHICLES
FREIGHT TRANSPORT
TRANSPORTATION RESEARCH
EMISSIONS
TRANSIT BENEFITS
GASOLINE CONSUMPTION
FATAL INJURIES
LORRIES
POLLUTANT EMISSIONS
SUBSIDY
TRAFFIC
TAX
GAS CONSUMPTION
PUBLIC TRANSPORT MODES
VEHICLE USE
MOTOR VEHICLE OWNERSHIP
TRAFFIC VOLUME
SPEEDS
TRAFFIC MANAGEMENT
VEHICLE
VEHICLE TRAVEL
ROAD
TRANSPORT ECONOMICS
COSTS
CAR OCCUPANCY
LAND USE ACCESSIBILITY
ELASTICITY OF VEHICLE TRAVEL
ROAD SECTOR
TRANSPORT
POPULATION GROWTH
LONG-DISTANCE
CONGESTION CHARGING
MODE OF TRANSPORT
MOBILITY
TRAVEL DEMAND
ROAD INJURIES
MODES OF TRANSPORT
POLLUTION
EXHAUST EMISSIONS
PRICE SENSITIVITY
FUEL CONSUMPTION
TRAFFIC ACCIDENTS
INJURY
GASOLINE PRICE
TAXES
PRICE CHANGE
ENERGY CONSUMPTION
VEHICLE USAGE
TRAVEL
COST OF CONGESTION
TRANSIT
CLIMATE CHANGE
VEHICLE FLEET
ROAD SAFETY
CONGESTION COSTS
EXCESS FUEL CONSUMPTION
ELASTICITIES
MOTOR VEHICLE
TAX SUBSIDIES
MOTOR VEHICLES
PUBLIC TRANSPORT
ODOMETER
SIGNALS
MODAL CHOICES
PRICE SENSITIVITIES
VEHICLE FUEL EFFICIENCY
HIGHWAY ADMINISTRATION
HIGHWAY
GASOLINE TAXES
RAILWAYS
INLAND TRANSPORT
FUEL PRICE
VEHICLE KILOMETERS
ACCIDENTS
FUEL OIL
INVESTMENTS
COSTS OF TRANSPORT
PEDESTRIANS
LONG-RUN ELASTICITIES
NOISE
SAFETY
PASSENGER TRANSPORT
Commander, Simon
Nikoloski, Zlatko
Vagliasindi, Maria
Estimating the Size of External Effects of Energy Subsidies in Transport and Agriculture
geographic_facet Africa
Egypt, Arab Republic of
Yemen, Republic of
relation Policy Research Working Paper;No. 7227
description It is widely accepted that the costs of underpricing energy are large, whether in advanced or developing countries. This paper explores how large these costs can be by focussing on the size of the external effects that energy subsidies in particular generate in two important sectors—transport and agriculture—in two countries in the Middle East and North Africa, the Arab Republic of Egypt (transport) and the Republic of Yemen (agriculture). The focus is mainly on the costs associated with congestion and pollution, as well as the impact of underpriced energy for depletion of scarce water resources, including through crop selection. Quantifying the size of external effects in developing countries has received relatively little analytical attention, although there is a significant body of literature for developed countries. By building on earlier research, as well as employing the United Nations ForFITS model, the paper provides indicative estimates of the external costs of energy subsidies, as manifested in congestion and pollution. The estimates using simulations indicate that these costs could be materially reduced by elimination or reduction of energy subsidies. The paper also describes the impact of energy subsidies on water consumption in a region where water resources are particularly limited. The findings provide further evidence of the adverse and significant consequences of subsidizing energy.
format Working Paper
author Commander, Simon
Nikoloski, Zlatko
Vagliasindi, Maria
author_facet Commander, Simon
Nikoloski, Zlatko
Vagliasindi, Maria
author_sort Commander, Simon
title Estimating the Size of External Effects of Energy Subsidies in Transport and Agriculture
title_short Estimating the Size of External Effects of Energy Subsidies in Transport and Agriculture
title_full Estimating the Size of External Effects of Energy Subsidies in Transport and Agriculture
title_fullStr Estimating the Size of External Effects of Energy Subsidies in Transport and Agriculture
title_full_unstemmed Estimating the Size of External Effects of Energy Subsidies in Transport and Agriculture
title_sort estimating the size of external effects of energy subsidies in transport and agriculture
publisher World Bank Group, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/04/24249970/
http://hdl.handle.net/10986/21674
_version_ 1764448948909506560
spelling okr-10986-216742021-04-23T14:04:04Z Estimating the Size of External Effects of Energy Subsidies in Transport and Agriculture Commander, Simon Nikoloski, Zlatko Vagliasindi, Maria POLLUTION COSTS POPULATION DENSITIES FUEL PRICE INCREASE PUBLIC TRANSIT TRANSPORT SECTOR FUEL PRICE INCREASES COST OF TRAVEL CARBON DIOXIDE FOSSIL FUELS PASSENGERS ROAD ACCIDENTS ENVIRONMENTAL COSTS CAR OWNERSHIP ELASTICITY GASOLINE JOURNEY VEHICLE OWNERSHIP TOLL VEHICLE CLASS COSTS OF CONGESTION TYPE OF TRANSPORT AIR TRANSPORT PRICING GREENHOUSE GAS VEHICLE CLASSES TRANSPORT SERVICES UNDERGROUND MODAL CHOICE TRANSPORT MODES TRAVEL COSTS FUEL ECONOMY CRASHES AIR POLLUTION ELASTICITIES OF ROAD TRAFFIC ELASTICITIES OF VEHICLE TRAVEL URBAN TRIPS TRANSPORT SYSTEMS EFFICIENT VEHICLES VEHICLE MILES VEHICLE EMISSIONS FUEL USE FUEL PRICE ELASTICITIES EXTERNALITIES VEHICLE TYPES URBAN BUSES TRIPS HIGH ENERGY DRAINAGE TRAVEL SURVEY PRICE ELASTICITY TRANSPORT DATA GAS EMISSIONS FUEL TAXES FUELS FUEL COSTS SUBSIDIES INFRASTRUCTURE LAND USE LONG RUN ELASTICITY BUSES PRIVATE VEHICLES VEHICLE FUEL ECONOMY TRANSPORT NETWORK EMISSION CONGESTION DRIVING TRANSPORTATION FUEL EFFICIENCY AIR POLLUTION DEATHS POLICIES MARGINAL EXTERNAL COSTS TRUCKS PRICE ELASTICITIES PUBLIC TRANSPORT NETWORK CARS TRADING PATTERNS ACCESSIBILITY TRUCK USE PRICE CHANGES EMISSION FACTORS PETROLEUM GAS FUEL PRICES PASSENGERS AS WELL PUBLIC TRANSPORT INFRASTRUCTURE COSTS OF FUEL URBAN MOBILITY VEHICLE EFFICIENCY FUEL TAX RAILWAY MINISTRY OF TRANSPORT CAR WALKING TRANSPORT TECHNOLOGIES VEHICLE FUEL VEHICLE COST COST OF TRANSPORT TRANSPORT ACTIVITY DIESEL FUEL RAIL FUEL MOTOR VEHICLE AIR POLLUTION TRIP CONGESTION COST TRANSPORT DEMAND TRANSPORT SYSTEM VEHICLE REGISTRATIONS VEHICLE AIR POLLUTION DIESEL ROAD TRANSPORT TRAVEL TIME TRANSPORT POLICIES FUEL COST FREIGHT ROAD TRAFFIC URBAN TRANSPORT LONG-DISTANCE TRAVEL FUEL SUBSIDIES AUTOMOBILE FUEL-EFFICIENT VEHICLES TRAFFIC CONGESTION PRICE OF FUEL ROAD DEATHS TRANSPORT SERVICE ENVIRONMENTAL DEGRADATION GREENHOUSE GAS EMISSIONS VEHICLE TRAVEL ELASTICITY TRANSPORT INFRASTRUCTURE VEHICLES FREIGHT TRANSPORT TRANSPORTATION RESEARCH EMISSIONS TRANSIT BENEFITS GASOLINE CONSUMPTION FATAL INJURIES LORRIES POLLUTANT EMISSIONS SUBSIDY TRAFFIC TAX GAS CONSUMPTION PUBLIC TRANSPORT MODES VEHICLE USE MOTOR VEHICLE OWNERSHIP TRAFFIC VOLUME SPEEDS TRAFFIC MANAGEMENT VEHICLE VEHICLE TRAVEL ROAD TRANSPORT ECONOMICS COSTS CAR OCCUPANCY LAND USE ACCESSIBILITY ELASTICITY OF VEHICLE TRAVEL ROAD SECTOR TRANSPORT POPULATION GROWTH LONG-DISTANCE CONGESTION CHARGING MODE OF TRANSPORT MOBILITY TRAVEL DEMAND ROAD INJURIES MODES OF TRANSPORT POLLUTION EXHAUST EMISSIONS PRICE SENSITIVITY FUEL CONSUMPTION TRAFFIC ACCIDENTS INJURY GASOLINE PRICE TAXES PRICE CHANGE ENERGY CONSUMPTION VEHICLE USAGE TRAVEL COST OF CONGESTION TRANSIT CLIMATE CHANGE VEHICLE FLEET ROAD SAFETY CONGESTION COSTS EXCESS FUEL CONSUMPTION ELASTICITIES MOTOR VEHICLE TAX SUBSIDIES MOTOR VEHICLES PUBLIC TRANSPORT ODOMETER SIGNALS MODAL CHOICES PRICE SENSITIVITIES VEHICLE FUEL EFFICIENCY HIGHWAY ADMINISTRATION HIGHWAY GASOLINE TAXES RAILWAYS INLAND TRANSPORT FUEL PRICE VEHICLE KILOMETERS ACCIDENTS FUEL OIL INVESTMENTS COSTS OF TRANSPORT PEDESTRIANS LONG-RUN ELASTICITIES NOISE SAFETY PASSENGER TRANSPORT It is widely accepted that the costs of underpricing energy are large, whether in advanced or developing countries. This paper explores how large these costs can be by focussing on the size of the external effects that energy subsidies in particular generate in two important sectors—transport and agriculture—in two countries in the Middle East and North Africa, the Arab Republic of Egypt (transport) and the Republic of Yemen (agriculture). The focus is mainly on the costs associated with congestion and pollution, as well as the impact of underpriced energy for depletion of scarce water resources, including through crop selection. Quantifying the size of external effects in developing countries has received relatively little analytical attention, although there is a significant body of literature for developed countries. By building on earlier research, as well as employing the United Nations ForFITS model, the paper provides indicative estimates of the external costs of energy subsidies, as manifested in congestion and pollution. The estimates using simulations indicate that these costs could be materially reduced by elimination or reduction of energy subsidies. The paper also describes the impact of energy subsidies on water consumption in a region where water resources are particularly limited. The findings provide further evidence of the adverse and significant consequences of subsidizing energy. 2015-04-02T18:43:24Z 2015-04-02T18:43:24Z 2015-04 Working Paper http://documents.worldbank.org/curated/en/2015/04/24249970/ http://hdl.handle.net/10986/21674 English en_US Policy Research Working Paper;No. 7227 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank Group, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Egypt, Arab Republic of Yemen, Republic of