Case studies: Lessons Learned From Attempts to Reform Fossil-Fuel Subsidies
The GSI has commissioned case studies of fossil-fuel subsidy reform in Brazil, France, Ghana, India, Indonesia, Poland and Senegal. From analysing experience in these countries, it is apparent that reform is not easy but can be achieved.
Case Study: Lessons Learned From Indonesia's Attempts to Reform Fossil-Fuel Subsidies
This report examines Indonesia's attempts to reform fossil-fuel subsidies. It reviews the history of fossil-fuel subsidies in the country and focuses on the performance of two policies that have been used to support reform. The first is the Bantuan Langsun Tunai, an unconditional cash transfer program used to help cushion low-income households from price increases in 2005 and 2008. The second program, begun in 2007, aims to make low-income households use liquefied petroleum gas (LPG) instead of kerosene, as it is cheaper to subsidize, cleaner and more efficient. The report concludes that both these policies appear to have achieved the Indonesian government's objectives.
Case Study: Brazil's Experience With Fossil-Fuel Subsidies and Their Reform
This paper examines how Brazilian governments have tried to justify fossil-fuel subsidies and looks at the interest groups who have benefitted from them and tried to maintain them. The Brazilian experience is useful for understanding the rationale for subsidies in countries with large regional and social disparities. The lessons learnt from liberalizing Brazil's energy market focus on how governments have tried to address the reasons used by interest groups to lobby for the continuation of existing subsidies.
Case Study: Attempts to Reform India's Kerosene Subsidy
This report examines attempts to reform India's long-standing subsidy on residential kerosene. At least one third of the subsidized kerosene is diverted to the black market for use as a transport fuel - a lucrative business for corrupt fuel distributors who, in turn, bribe government officials to obtain licenses to distribute or blend the fuel and to maintain the subsidy.
Case Study: Restructuring Poland's Coal-Mining Industry
This report examines the reform process in the context of Polish coal mining. Soon after the economic transition began in 1989, demand for coal declined but controls on coal prices remained in place. A reform program endorsed by the Solidarity trade union, and backed by substantial public funds for closing mines and providing social benefits, was at least a partial success. Today, coal companies have nearly achieved long-term viability and the process of privatization has commenced.
Strategies for Reforming Fossil-Fuel Subsidies: Practical Lessons From Ghana, France and Senegal
This paper draws on case studies the GSI has commissioned on fossil-fuel subsidy reform in Brazil, France, Ghana, India, Indonesia, Poland and Senegal. It identifies six stages that improve the chance that a reform process will lead to lasting change: research of subsidy costs, benefits and reform impacts; establishment of clear reform objectives and parameters; construction of a coherent reform policy, including a timeframe, complementary policies to offset unwanted secondary impacts and a communications strategy; effective implementation; monitoring evaluation and adjustment; and finally institutional measures to prevent back-sliding.