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The Egyptian EconomyCurrent Challenges and Future Prospects$
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Hanaa Kheir-El-Din

Print publication date: 2008

Print ISBN-13: 9789774161544

Published to Cairo Scholarship Online: September 2011

DOI: 10.5743/cairo/9789774161544.001.0001

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The Impact of Reducing Energy Subsidies on Energy Intensive Industries in Egypt

The Impact of Reducing Energy Subsidies on Energy Intensive Industries in Egypt

(p.263) Chapter 9 The Impact of Reducing Energy Subsidies on Energy Intensive Industries in Egypt
The Egyptian Economy

Hanaa Kheir-El-Din

American University in Cairo Press

This chapter investigates the potential impact of reducing energy subsidies in Egypt on energy-intensive industries. A partial equilibrium approach is applied to assess such a policy. Specifically, the chapter examines the effect of subsidy reduction on energy-driven sectors, under different scenarios of increasing prices of energy products. The chapter is organized as follows. Section 1 discusses the concept of subsidy in addition to the rationale behind the energy subsidy system. Section 2 examines the characteristics and challenges of energy subsidies in Egypt. It also assesses the fiscal burden of energy subsidies on government budget. Section 3 analyzes the partial effect of energy subsidy reduction. Finally, Section 4 sums up the main findings of the study and their policy implications.

Keywords:   Egyptian economy, energy subsidies, energy policy, subsidy reduction

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