Paper of World Bank Energy Department, No 3, December 1981
“The first comprehensive study financed by the Bank of the effects of energy price changes in a developing country was completed in September 1981 for Egypt. Although the data and model used in the study are clearly specific to Egypt, the study provides insight into the mechanisms through which energy prices affect other prices in the economy and, therefore, the incomes of rich and poor consumers, the profitability of key industries, the balance of payments, and the government budget. This note is not a summary of the Egypt study. Rather, the first section is organized around a series of empirical questions about energy pricing and use in developing countries; it summarizes the evidence from Egypt. The second section brings together this evidence to formulate a set of policy recommendations that can be derived from the pricing study.”
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Reproduced with permission of World Bank