FEEM-IEFE seminar on “Distributional impact of reducing fossil fuel subsidies in Indonesia”
Meno di un minuto
This month’s FEEM-IEFE Seminar discusses the development of a non-behavioural microsimulation model to assess a policy reducing fossil fuel subsidies in Indonesia. By introducing the distributional dimension in a classical CGE framework, microsimulation models are particularly suited to assess inequality and poverty changes induced by a shock. Results show that, despite an envisaged limited decrease of fossil fuel subsidy, such a reform may have a non-negligible impact on welfare.