This report analyzes the experiences of countries that have undertaken reform of their fossil-fuel subsidies and establishes what lessons can be learned. It focuses in particular on France, Ghana and Senegal, as well as drawing from case studies of other countries and previous work that examines the reform of energy subsidies and price subsidies.
The study finds that, once in place, fossil-fuel subsidies are extremely difficult to remove. There is no single formula for success, and country circumstances and changing global conditions must be taken into account. However, strategies can be identified that contribute to successful reform and respond to individual country circumstances. This paper focuses on six important strategies that appear to improve the chances of lasting change:
- research
- establishing reform objectives and parameters
- building a coherent reform policy
- implementation
- monitoring, evaluation and adjustment
- going forward