Energy subsidies are expensive, damage the climate, and disproportionately benefit the well-off. Their reduction can encourage energy efficiency, increase the attractiveness of renewable energy, and allow more resources to flow to poor people and to investments in cleaner power. Though subsidy reduction is never easy, the Bank has a record of accomplishment in this area, especially in the transition countries. About a quarter of Bank energy projects included attention to price reform. Improvements in the design and implementation of social safety nets can help to rationalize energy prices while protecting the poor. Fuel Subsidies Compared to Health Expenditures |  |  Fuel Subsidies (in % of GDP) |  Fuel Subsidies to public expenditures on health Ratio |  |  2006 |  2007 |  2008 |  | AFRICA | Angola | 3.5 |  3.6 |  2.5 | 170% | Burkina Faso | 0.7 |  0.7 |  1.0 | 24% | Cameroon |  0.0 | 0.0 | 1.0 | 22% | Cape Verde | 1.9 | 0.0 | 0.0 | 0% | Gabon | 2.0 | 1.3 | 1.7 | 57% | Mauritania | 0.0 | 0.0 | 0.1 | 6% | Mauritius   | 0.0 | 0.0 | 0.5 | 23% | Nigeria  | 0.0 | 1.3 | 2.0 | 168% | Senegal | 0.6 | 0.3 | 1.3 | 77% | Sudan | 2.2 | 1.0 | 1.6 | 112% | SOUTH ASIA | Bangladesh | 1.8 | 2.9 | 3.0 | 362% | India | 1.6 | 1.2 | 2.0 | 213% | Sri Lanka | 0.8 | 0.3 | 0.4 | 21% | EAST ASIA AND THE PACIFIC | Brunei Darussalam  | 1.0 | 1.0 | 1.0 | 63% | Cambodia | 1.5 | 2.1 | 2.6 | 168% | Malaysia | 1.3 | 1.4 | 2.8 | 149% | Nepal   | 1.8 | 1.8 | 2.0 | 123% | Pakistan | 0.5 | 0.5 |  2.8 |  751% | EUROPE AND CENTRAL ASIA | Azerbaijan | 2.2 | 0.9 | 0.2 | 21% | Bosnia & Herzegovina | 0.3 | 0.4 | 0.4 | 8% | Belarus   | 4.4 | 4.9 | 7.4 | 148% | Russian Federation | 0.5 | 0.4 | 0.3 | 9% | Turkmenistan | 11.3 | 13.3 | 15.2 | 475% | Ukraine | 2.3 | 2.3 | 3.3 |  89% | MIDDLE EAST AND NORTH AFRICA | Egypt, Arab Rep. of | 8.3 | 7.0 | 8.4 | 362% | Iraq |  5.7 | 0.2 | 0.4 | 13% | Jordan | 3.6 | 4.5 | 2.5 | 53% | Lebanon | 0.1 | 0.1 | 0.2 | 5% | Morocco | 2.3 | 2.7 | 5.0 | 258% | Oman | 2.8 | 3.2 | 3.2 | 151% | Tunisia | 1.9 | 2.3 | 2.2 | 90% | United Arab Emirates | 2.9 | 2.7 | 2.5 | 134% | Yemen, Republic of  | 8.3 | 9.4 | 11.6  | 544% | LATIN AMERICA AND THE CARIBBEAN | Argentina | 1.1 | 1.7 | 0.0 | 0% | Belize | 0.1 | 0.4 | 0.4 | 16% | Barbados | 0.0 | 1.0 | 0.3 | 7% | Costa Rica | 0.0 | 0.0 | 0.5 | 9% | Ecuador | 5.6 | 6.4 | 8.7 | 410% | El Salvador | 0.0 | 1.4 | 2.0 | 53% | Guatemala | 0.0 | 0.0 | 0.4 | 19% | Honduras | 0.9 | 0.9 | 0.8 | 20% | Mexico | 0.0 | 1.6 | 2.1 | 72% | Panama | 0.0 | 0.5 | 0.5 | 10% | Peru | 0.0 | 0.2 | 1.0 | 47% | St. Vincent and Grenadines | 0.5 | 1.0 | 0.0 | 0% | Trinidad and Tobago | 0.8 | 0.8 | 0.8 | 35% | Uruguay | 0.0 | 0.4 | 0.4 | 11% | Venezuela, Rep. Bol. de | 4.6 | 5.9 | 7.7 | 363% | Source: Subsidies from IMF (2008). Health expenditure from World Development Indicators.
Note:Â Last column shows ratio of 2008 GDP share of fuel subsidies to 2005 GDP share of public expenditure on health. |
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