Energy Policy in a Price‐Regulated Developing Economy: A Study of Egypt
David Pearce
(Professor of Political Economy, University College London, Gower Street, London, WCIE 6BT)
Ronald Edwards
(Senior Economist, PEIDA Planning and Economic Consultants, 10 Chester Street, Edinburgh, Scotland, EH3 7RA)
151
Abstract
As with many other developing economies, Egypt pursues a policy of keeping domestic energy prices below border prices. This entails both financial subsidies to energy producers and users, and significant opportunity costs in terms of foregone foreign and government revenues. This article details the price structure and uses two models to assess the macroeconomic and microeconomic impacts of policies designed to correct the domestic/border price disparity.
Citation
Pearce, D. and Edwards, R. (1984), "Energy Policy in a Price‐Regulated Developing Economy: A Study of Egypt", Journal of Economic Studies, Vol. 11 No. 1, pp. 3-26. https://doi.org/10.1108/eb002570
Publisher
:MCB UP Ltd
Copyright © 1984, MCB UP Limited