Baoping Shang

How Large are Global Energy Subsidies

This paper provides a comprehensive, updated picture of energy subsidies at the global and regional levels. It focuses on the broad notion of post-tax energy subsidies, which arise when consumer prices are below supply costs plus a tax to reflect environmental damage and an additional tax applied to all consumption goods to raise government revenues. Post-tax energy subsidies are dramatically higher than previously estimated, and are projected to remain high. These subsidies primarily reflect under-pricing from a domestic (rather than global) perspective, so even unilateral price reform is in countries’ own interests. The potential fiscal, environmental and welfare impacts of energy subsidy reform are substantial.

The Challenge of Public Pension Reform in Advanced and Emerging Economies

Pension reform is high on the policy agenda of many advanced and emerging market economies. In advanced economies the challenge is generally to contain future increases in public pension spending as the population ages. In emerging market economies, the challenges are often different. Where pension coverage is extensive, the issues are similar to those in advanced economies. Where pension coverage is low, the key challenge will be to expand coverage in a fiscally sustainable manner. This volume examines the outlook for public pension spending over the coming decades and the options for reform in 52 advanced and emerging market economies.

Climate Mitigation in China; Which Policies Are Most Effective?

For the 2015 Paris Agreement on climate change, China pledged to reduce the carbon dioxide (CO2) intensity of GDP by 60–65 percent below 2005 levels by 2030. This paper develops a practical spreadsheet tool for evaluating a wide range of national level fiscal and regulatory policy options for reducing CO2 emissions in China in terms of their impacts on emissions, revenue, premature deaths from local air pollution, household and industry groups, and overall economic welfare. By far, carbon and coal taxes are the most effective policies for meeting environmental and fiscal objectives as they comprehensively cover emissions and have the largest tax base.

From Ambition to Execution: Policies in Support of Sustainable Development Goals

The formal launch of the Sustainable Development Goals (SDGs) sets the global development agenda through 2030, placing significant emphasis on promoting social and environmental sustainability alongside economic growth and poverty reduction. Meeting the SDGs will require actions across a wide range of areas by both national governments and the international community. This paper examines the types of policies that developing countries will need to implement to foster economic transformation, to promote economic and social inclusion, and to meet key environmental objectives. Reducing inequality, achieving gender equity, and pricing energy and water resources appropriately receive particular attention.

Energy Price Reform: Lessons for Policymakers

Following the landmark 2015 Paris Climate Agreement, and given concerns about increasing air pollution in many urban areas and historically high fiscal pressures, the need for energy price reform has never been more urgent. Policymakers around the world need guidance on the appropriate level of energy prices and how to address the practical challenges of implementing reforms. This article reviews the recent literature on efficient fossil fuel prices that reflect supply and environmental costs, as well as the benefits of price reform. We also examine recent experiences around the world to identify the key lessons learned for the design of successful reforms.