== Abstract ==

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It is widely accepted that the costs of             underpricing energy are large, whether in advanced or             developing countries. This paper explores how large these             costs can be by focussing on the size of the external             effects that energy subsidies in particular generate in two             important sectors—transport and agriculture—in two countries             in the Middle East and North Africa, the Arab Republic of             Egypt (transport) and the Republic of Yemen (agriculture).             The focus is mainly on the costs associated with congestion             and pollution, as well as the impact of underpriced energy             for depletion of scarce water resources, including through             crop selection. Quantifying the size of external effects in             developing countries has received relatively little             analytical attention, although there is a significant body             of literature for developed countries. By building on             earlier research, as well as employing the United Nations             ForFITS model, the paper provides indicative estimates of             the external costs of energy subsidies, as manifested in             congestion and pollution. The estimates using simulations             indicate that these costs could be materially reduced by             elimination or reduction of energy subsidies. The paper also             describes the impact of energy subsidies on water             consumption in a region where water resources are             particularly limited.  The findings provide further evidence             of the adverse and significant consequences of subsidizing energy.

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Document type: Preprint

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== Full document ==

<pdf>Media:Commander_et_al_2015a-beopen1999-3669-document.pdf</pdf>

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== Original document ==

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The different versions of the original document can be found in:

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* [http://dx.doi.org/10.1596/1813-9450-7227 http://dx.doi.org/10.1596/1813-9450-7227]

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* [http://hdl.handle.net/10986/21674 http://hdl.handle.net/10986/21674] under the license http://creativecommons.org/licenses/by/3.0/igo/

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* [http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/01/090224b082d2570a/1_0/Rendered/PDF/Estimating0the0port0and0agriculture.pdf http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/01/090224b082d2570a/1_0/Rendered/PDF/Estimating0the0port0and0agriculture.pdf]

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* [https://openknowledge.worldbank.org/bitstream/10986/21674/2/WPS7227.pdf https://openknowledge.worldbank.org/bitstream/10986/21674/2/WPS7227.pdf] under the license cc-by

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* [https://openknowledge.worldbank.org/handle/10986/21674 https://openknowledge.worldbank.org/handle/10986/21674],

: [http://documents.worldbank.org/curated/pt/844851468188674686/Estimating-the-size-of-external-effects-of-energy-subsidies-in-transport-and-agriculture http://documents.worldbank.org/curated/pt/844851468188674686/Estimating-the-size-of-external-effects-of-energy-subsidies-in-transport-and-agriculture],

: [https://elibrary.worldbank.org/doi/book/10.1596/1813-9450-7227 https://elibrary.worldbank.org/doi/book/10.1596/1813-9450-7227],

: [https://openknowledge.worldbank.org/bitstream/handle/10986/21674/WPS7227.pdf;sequence=2 https://openknowledge.worldbank.org/bitstream/handle/10986/21674/WPS7227.pdf;sequence=2],

: [http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/01/090224b082d2570a/1_0/Rendered/PDF/Estimating0the0port0and0agriculture.pdf http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/01/090224b082d2570a/1_0/Rendered/PDF/Estimating0the0port0and0agriculture.pdf],

: [http://core.ac.uk/display/35434093 http://core.ac.uk/display/35434093],

: [https://documents.albankaldawli.org/curated/ar/844851468188674686/Estimating-the-size-of-external-effects-of-energy-subsidies-in-transport-and-agriculture https://documents.albankaldawli.org/curated/ar/844851468188674686/Estimating-the-size-of-external-effects-of-energy-subsidies-in-transport-and-agriculture],

: [https://ideas.repec.org/p/wbk/wbrwps/7227.html https://ideas.repec.org/p/wbk/wbrwps/7227.html],

: [http://eprints.lse.ac.uk/60561 http://eprints.lse.ac.uk/60561],

: [http://www.indiaenvironmentportal.org.in/files/file/Estimating%20the%20Size%20of%20External%20Effects.pdf http://www.indiaenvironmentportal.org.in/files/file/Estimating%20the%20Size%20of%20External%20Effects.pdf],

: [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2589351 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2589351],

: [https://documents.shihang.org/curated/zh/844851468188674686/Estimating-the-size-of-external-effects-of-energy-subsidies-in-transport-and-agriculture https://documents.shihang.org/curated/zh/844851468188674686/Estimating-the-size-of-external-effects-of-energy-subsidies-in-transport-and-agriculture],

: [https://www.cabdirect.org/cabdirect/abstract/20153185934 https://www.cabdirect.org/cabdirect/abstract/20153185934],

: [https://documents.vsemirnyjbank.org/curated/ru/844851468188674686/Estimating-the-size-of-external-effects-of-energy-subsidies-in-transport-and-agriculture https://documents.vsemirnyjbank.org/curated/ru/844851468188674686/Estimating-the-size-of-external-effects-of-energy-subsidies-in-transport-and-agriculture],

: [https://www.wdronline.worldbank.org/handle/10986/21674 https://www.wdronline.worldbank.org/handle/10986/21674],

: [https://academic.microsoft.com/#/detail/2159296995 https://academic.microsoft.com/#/detail/2159296995]

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