Distributional effects of oil price changes on household expenditures
Subtitle: evidence from Mali
By: prepared by Kangni Kapodar.
Contributors: International Monetary Fund. African Dept.
Series: IMF working paper -- WP/06/91
Publisher: International Monetary Fund, African Dept.
Published: 2006
Place of publication: [Washington, D.C.]
Language: eng
Number of pages: 31
Subjects: Petroleum products -- Economic aspects -- Mali -- Econometric models.; Cost and standard of living -- Economic aspects -- Mali.; Petroleum industry and trade -- Subsidies -- Mali.
Description: Using an input-output approach, this paper assesses the distributional effects of a rise in various petroleum product prices in Mali. The results show that, although rising gasoline and diesel prices affect mainly nonpoor households, rising kerosene prices are most harmful to the poor. Overall, the impact of fuel prices on household budgets displays a U-shaped relationship with expenditure per capita. Regardless of the oil product considered, high income households would benefit disproportionately from oil price subsidies. This suggests that a petroleum price subsidy is an ineffective mechanism for protecting the income of poor households compared with a targeted subsidy.
Notes: "March 2006."

Includes bibliographical references (p. 27-28).

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