Cutting energy subsidies while protecting affordability

A new World Bank report, “Balancing Act: Cutting Energy Subsidies While Protecting Affordability” analyzes the energy efficiency policies of seven countries that were successful in achieving low energy intensities or in reducing their energy intensity considerably. The report proposes that with well-designed energy tariffs and social protection policies, the fiscal and environmental benefits of eliminating energy subsidies do not have to come at the expense of increased poverty and hardship. In particular, the report provides the “how-to” of energy efficiency policies, including: getting the prices right; coordinating policies, learning, and adjusting; and quick wins in manufacturing.