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Working Paper - 218 - Household Energy Demand and the Impact of Energy Prices: Evidence from Senegal
Fossil fuel subsidies are often used by governments to promote eonomi development or alleviate poverty. But they have been proven as an ineient means of ahieving their primary goal of poverty redution. Rather they have reated market distortions and enouraged wasteful onsumption. The reent energy risis has ontributed to make fossil fuel subsidies very ostly and unsustainable for government budget and eonomi growth, espeially for many Afrian ountries. This situation has alled for urgent poliy ations to reform these subsidies.