The Political Economy of Hydrocarbon Wealth and Fuel Prices

Examines previous research on fossil fuel subsidies

Abstract

All governments either tax or subsidize the consumption of fossil fuels. These pricing policies have far-reaching consequences not only for the environment, but also for governance and economic development. In this state-of-knowledge paper, the authors examine previous research on fossil fuel subsidies, noting areas that are understudied in the context of determinants of price policies and causes for policy reform. They then describe new data on implicit gasoline taxes and subsidies, report global trends, and explore the relationship between oil wealth and government policies. The authors conclude with actionable ideas for future research projects.

This research was supported by the UK Department for International Development’s Energy and Economic Growth Applied Research Programme

Citation

Paasha Mahdavi and Michael Ross (2016) The Political Economy of Hydrocarbon Wealth and Fuel Prices, EEG State-of-Knowledge Paper Ser ies, Oxford Policy Management, Center for Effective Global Action, Energy Institute @ Haas, 28p

The Political Economy of Hydrocarbon Wealth and Fuel Prices

Published 31 December 2016