ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book provides a comprehensive and systematic account of the factors that policy makers must consider, in order to design effective fossil fuel subsidies (FFS) reforms. It recognises that in practice environmental objectives often play a secondary role; instead the rationale for FFS reforms is determined within a complex – and sometimes conflicting – context of fiscal, macroeconomic, political, and social factors. The book provides a comprehensive and robust guideline for the analytical assessment of reforms and practical advice to policy makers. It focuses on different parts of the economy in order to provide specific and practical guidance to the simulation, design, and evaluation of FFS reforms. The book presents the case of Nigeria and focuses on general equilibrium effects at the macro-economic level and draws attention to the important role of fuel smuggling and tax evasion in the context of FFS reform.
