Energy Subsidy Reform in Egypt: The Gender – 'Energy' Poverty Nexus

Abstract

The purpose of this study is to quantify the effects of the current energy reform policy on household expenditures along gender and regional lines. Gender analysis helps to identify constraints such as transportation poverty faced by women to access economic opportunities like education and/or employment. Regional analysis is crucial as well. An energy reform policy on butane gas cylinders, for example, may have a greater effect on rural households compared to urban households since the majority of urban residents rely on natural gas as the main source of energy for electricity and heating water. Results of the study are summarized as follows: 1- the government is taking serious efforts to gradually remove energy subsidies. 2- The poor will pay a higher price than the rest of the population. 3- a comprehensive policy to ease the burden on the poor is to consider a spatially targeted plan in which public investment are weighted significantly in favor of Upper Egypt and rural areas at large. In particular, structural investments in education, health and employment must precede welfare compensatory policies.

Keywords: energy prices, subsidies, welfare distribution, regional distribution, gender, household survey data

JEL Classification: C40, D31, D60, H20, I38, J16, R20