Dead Weight Loss
Efficiency Loss
Consumer Subsidy
Producer Subsidy
Price Gap Approach
Inventory Approach
Pre-tax Subsidy
Post Tax Subsidy
Pass Through
Electricity Subsidy
Normative losses
Excess Loss
Cost Recovery Price
Average Tariff
Economic and Social implication
Reduced Investment
Diminished Competitiveness of Private Sector
Crowding out Effect
Increased Smuggling
Public Finances Impact
Balance of Payments
Environent and Society
Direct Effect
Indirect Effect
Sobsidy Reform Requirements
Long Term Objectives and an analysis of impact of reforms
Transparent and extensive communication and consultations with stakeholders on size of subsidies and the effects on the budget
Price increased that are phased in over time
Improving the Efficiency in State owned Enterprsures to reduce Producer Subsidies
Measures to protect the poor through cash and near-cash transfers
Institutional Reforms that depoliticize Energy Pricing,such as introduction to automatic price mechanisms
Estimating Corrective Taxes
Externalities due to pollution use
Non pollution externaities from motor vehicles
BARRIERS TO REFORM
Information
Government credibility
Concerns about fiscal impact
Inflation,price volatility and competitiveness
Unfavorable macroeconomic conditions
Opposition from interest groups
A SUCESSUL REFORM STARTEGY
Price SmoothingMechanism
Targeting Mechanisms
