We construct a dynamic model of a small open economy to analyze the effects of large energy subsidies. The model … includes domestic energy production and consumption, trade in energy at world market prices, as well as private and public … sector production. The model is calibrated to Egypt and used to study reforms such as reductions in energy subsidies with …

countries (SEMCs) between energy supply and demand and socio-economic development, as well as the potential role of energy …, the changing role of energy (both demand and supply) in southern Mediterranean economies, focusing on its positive and … channels of relations between energy supply and demand policies and economic and social development. The burdens of energy …

This paper studies the macroeconomic effects of energy price shocks in energy-importing economies using a heterogeneous …-agent New Keynesian model. When MPCs are realistically large and the elasticity of substitution between energy and domestic … goods is realistically low, increases in energy prices depress real incomes and cause a recession, even if the central bank …

. Among our findings, we show that, in the absence of renewable energy sources and break-through technologies, meeting the …