The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali

Many net oil-importing developing countries, particularly African economies, have faced economic difficulties with high oil price increases. As a case study, this paper assesses the distributional effects of a rise in various petroleum product prices in Mali using a standard computable general equil...

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Main Authors: Kpodar, Kangni, Djiofack, Calvin
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4644
id okr-10986-4644
recordtype oai_dc
spelling okr-10986-46442021-04-23T14:02:18Z The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali Kpodar, Kangni Djiofack, Calvin Microeconomic Analyses of Economic Development O120 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Energy: Demand and Supply Q410 Energy and the Macroeconomy Q430 Many net oil-importing developing countries, particularly African economies, have faced economic difficulties with high oil price increases. As a case study, this paper assesses the distributional effects of a rise in various petroleum product prices in Mali using a standard computable general equilibrium model. The results suggest that rising diesel prices primarily affect richer households, while the poorest ones tend to suffer more from higher kerosene and gasoline prices. Overall, the impact of fuel prices on household budgets shows a U-shaped relationship with expenditure per capita. Regardless of the oil product considered, high-income households benefit disproportionately from oil price subsidies. This suggests that petroleum price subsidies are ineffective in protecting the income of poor households compared with a targeted subsidy. 2012-03-30T07:29:00Z 2012-03-30T07:29:00Z 2010 Journal Article Journal of African Economies 09638024 http://hdl.handle.net/10986/4644 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Mali
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Microeconomic Analyses of Economic Development O120
Economic Development: Agriculture
Natural Resources
Energy
Environment
Other Primary Products O130
Energy: Demand and Supply Q410
Energy and the Macroeconomy Q430
spellingShingle Microeconomic Analyses of Economic Development O120
Economic Development: Agriculture
Natural Resources
Energy
Environment
Other Primary Products O130
Energy: Demand and Supply Q410
Energy and the Macroeconomy Q430
Kpodar, Kangni
Djiofack, Calvin
The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali
geographic_facet Mali
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description Many net oil-importing developing countries, particularly African economies, have faced economic difficulties with high oil price increases. As a case study, this paper assesses the distributional effects of a rise in various petroleum product prices in Mali using a standard computable general equilibrium model. The results suggest that rising diesel prices primarily affect richer households, while the poorest ones tend to suffer more from higher kerosene and gasoline prices. Overall, the impact of fuel prices on household budgets shows a U-shaped relationship with expenditure per capita. Regardless of the oil product considered, high-income households benefit disproportionately from oil price subsidies. This suggests that petroleum price subsidies are ineffective in protecting the income of poor households compared with a targeted subsidy.
format Journal Article
author Kpodar, Kangni
Djiofack, Calvin
author_facet Kpodar, Kangni
Djiofack, Calvin
author_sort Kpodar, Kangni
title The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali
title_short The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali
title_full The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali
title_fullStr The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali
title_full_unstemmed The Distributional Effects of Oil Price Changes on Household Income: Evidence from Mali
title_sort distributional effects of oil price changes on household income: evidence from mali
publishDate 2012
url http://hdl.handle.net/10986/4644
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