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Ukraine gas pricing policy : distributional consequences of tariff increases

Author: Pritha Mitra; Ruben Atoyan
Publisher: Washington, DC : International Monetary Fund, ©2012.
Series: IMF working paper, no. 12/247.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Ukraine's gas pricing policy subsidizes gas and heating for all households. As the cost of imported gas rises, this policy increasingly weighs on government finances, sustains energy over-consumption, dampens investment in delivery systems, and undermines incentives for domestic production. However, gas price hikes have been deferred to the medium-term as they are politically unpopular. Through estimation of  Read more...
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Genre/Form: Electronic books
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Pritha Mitra; Ruben Atoyan
ISBN: 9781475512908 1475512902
OCLC Number: 823730142
Notes: "October 2012."
Description: 1 online resource (22 pages) : illustrations (some color).
Series Title: IMF working paper, no. 12/247.
Responsibility: prepared by Pritha Mitra and Ruben Atoyan.

Abstract:

Ukraine's gas pricing policy subsidizes gas and heating for all households. As the cost of imported gas rises, this policy increasingly weighs on government finances, sustains energy over-consumption, dampens investment in delivery systems, and undermines incentives for domestic production. However, gas price hikes have been deferred to the medium-term as they are politically unpopular. Through estimation of household demand functions by income quintiles to evaluate the distributional consequences of tarrif reform, this paper finds that tariff reforms combined with targeted social support can address the economic inefficiencies of the current pricing policy without large welfare costs to the lower income segments of the population.

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