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Fuel subsidies and income redistribution in Ecuador

Author

Listed:
  • Xavier Jara
  • Po Chun Lee
  • Lourdes Montesdeoca
  • Marcelo Varela

Abstract

This paper aims to evaluate the progressivity of different fuel subsidies in Ecuador as well as the budgetary and distributional effects of a potential elimination of such subsidies. Our analysis makes use of ECUAMOD, the tax-benefit microsimulation model for Ecuador, together with representative household microdata from ENIGHUR 2011-12. Our results show that domestic gas subsidy tends to be progressive, whereas gasoline and diesel subsidies tend to be regressive.

Suggested Citation

  • Xavier Jara & Po Chun Lee & Lourdes Montesdeoca & Marcelo Varela, 2018. "Fuel subsidies and income redistribution in Ecuador," WIDER Working Paper Series wp-2018-144, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-144
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    References listed on IDEAS

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    Cited by:

    1. Fabio Andrés Díaz Pabón & María Gabriela Palacio Ludeña, 2021. "Inequality and the Socioeconomic Dimensions of Mobility in Protests: The Cases of Quito and Santiago," Global Policy, London School of Economics and Political Science, vol. 12(S2), pages 78-90, April.
    2. H. Xavier Jara & María Gabriela Palacio Ludeña, 2024. "Rethinking social assistance amid the COVID‐19 pandemic: Guaranteeing the right to income security in Ecuador," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(3), pages 1738-1764, April.
    3. Bhuvandas, Dhanyashree & Gundimeda, Haripriya, 2020. "Welfare impacts of transport fuel price changes on Indian households: An application of LA-AIDS model," Energy Policy, Elsevier, vol. 144(C).
    4. Chiriboga, Gonzalo & Chamba, Rommel & Garcia, Andrés & Heredia-Fonseca, Roberto & Montero- Calderón, Carolina & Carvajal C, Ghem, 2023. "Useful energy is a meaningful approach to building the decarbonization: A case of study of the Ecuadorian transport sector," Transport Policy, Elsevier, vol. 132(C), pages 76-87.

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