Energy Subsidy Reform Assessment Framework (ESRAF): Identifying and Quantifying Energy Subsidies - Good Practice Note 1

This is the first in the series of 10 guidance notes under the Energy Sector Reform Assessment Framework (ESRAF), an initiative of the Energy Sector Management Assistance Program (ESMAP) of the World Bank. ESRAF proposes a guide to analyzing energy subsidies, the impacts of subsidies and their reforms, and the political context for reform in developing countries. This note provides guidance on how to approach and assess energy subsidies, quantifying them where possible. it suggests a definition of subsidies and describes options for categorizing and measuring subsidies. it also outlines policy issues to consider in reforming the subsidies in developing countries.

ESRAF Good Practice Overview: Guidance for Comprehensive Energy Subsidy Reforms

ESRAF Good Practice Note 1: Identifying and Quantifying Energy Subsidies

ESRAF Good Practice Note 2: Assessing the Fiscal Cost of Subsidies and Fiscal Impact of Reform

ESRAF Good Practice Note 3:  Analyzing the Incidence of Consumer Price Subsidies and the Impact of Reform on Households — Quantitative Analysis

ESRAF Good Practice Note 4 to come: Incidence of Price Subsidies on Households and Distributional Impact of Reform — Qualitative Methods

ESRAF Good Practice Note 5:  Assessing the Readiness of Social Safety Nets to Mitigate the Impact of Reform

ESRAF Good Practice Note 6 to come: Identifying the Impacts of Higher Energy Prices on Firms and Industrial Competitiveness

ESRAF Good Practice Note 7: Modeling Macroeconomic Impacts and Global Externalities

ESRAF Good Practice Note 8: Local Environmental Externalities due to Energy Price Subsidies — A Focus on Air Pollution and Health

ESRAF Good Practice Note 9: Assessing the Political Economy of Energy Subsidies to Support Policy Reform Operations

ESRAF Good Practice Note 10: Designing Communication Campaigns for Energy Subsidy Reform


Kojima, Masami. 2018. Identifying and Quantifying Energy Subsidies: Energy Subsidy Reform Assessment Framework (ESRAF) Good Practice Note 1. ESMAP Paper. Washington, D.C.: World Bank Group.

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