The Energy Sector Reform and Macroeconomic Adjustment in a Transition Economy: The Case of Romania

April 1, 2003

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Format: Chicago

Stéphane Cossé. The Energy Sector Reform and Macroeconomic Adjustment in a Transition Economy: The Case of Romania, (USA: International Monetary Fund, 2003) accessed November 21, 2024

Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper assesses the main issues faced by the energy sector in a transition economy such as Romania and their macroeconomic dimension. It examines how the size of quasi-fiscal subsidies, owing mainly to inappropriate prices and the lack of financial discipline, has led to an increased focus on the energy sector under the IMF-supported programs. The paper analyzes the macroeconomic impact of recent reform measures and discusses the next steps to improve price policy and collection in energy utilities. Shifting to targeted budgetary subsidies appears also to be a crucial reform step.

Subject: Commodities, Economic sectors, Electricity, Energy sector, Expenditure, Government subsidies, Natural gas sector, Tariffs, Taxes

Keywords: Central and Eastern Europe, District heating company, Electricity, Energy sector, Energy sector company, Enterprises' profitability, Europe, Firm, Firm collection policy, Government, Government subsidies, Low income, Macroeconomic stabilization, Natural gas sector, PDP, Price, Quasi-fiscal activities, Regulatory authority, Romania, State-owned company, Subsidy, Tariffs, Transition, Western Europe

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Policy Discussion Paper No. 2003/002
Stock No:

PPIEA0022003
ISBN:

9781451974546
ISSN:

1564-5193

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