Fiscal and Welfare Impacts of Electricity Subsidies in Central America (Directions in Development) by Marco Antonio Hernández Oré
English | Oct. 23, 2017 | ISBN: 1464811040 | 221 Pages | PDF | 4 MB
Central American countries use approximately one percent of their aggregate gross domestic product to subsidize residential electricity consumption. This amount is comparable to what these countries spend on education and social assistance. The pressure that these electricity subsidies exert on government budgets is particularly high when international energy prices rise. Furthermore, electricity subsidies may have negative effects on the environment because of overconsumption of electricity and an increase in greenhouse gas emissions.