Munich Personal RePEc Archive

Quelles solutions à la hausse continue de la facture publique pétrolière : maintien des appuis à la consommation ou libre fixation des prix par le marché ?

Diagne, Youssoupha S and Diop, Mouhamadou M (2007): Quelles solutions à la hausse continue de la facture publique pétrolière : maintien des appuis à la consommation ou libre fixation des prix par le marché ? Published in: website www.dpee.sn

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Abstract

This paper focuses on the effects of oil subsidies removal on households’ welfare in Senegal. The methodology is based on the estimations of gas and electricity demand functions using data from the Poverty Follow-up Survey. The results suggest a gas subsidies removal in the whole country even though such a policy is still useful to preserve the atmosphere. Regarding the electricity, the findings suggest to revisit the billing system as it favours richer households. Leave gas and electricity market prices could be the right option as their share in households’ total expenditures is low. It is also recommended to use the saved funds in order to stimulate the economic activity.

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