Many energy subsidies encourage the production and consumption of fossil fuels that damage the environment. What is more, these subsidies contribute to budget deficits in emerging economies and often fail to reach the poorest households. Motivated by these concerns, ISEP explores innovative approaches to energy subsidy reform. We are currently working on project such as:

• In India, we collaborate with the Global Subsidies Initiative to understand people’s willingness to pay for improved electricity service. Our surveys and experiments seek to understand why Indian states face such difficulties in improving the quality of electricity distribution by allowing distribution companies to cover the real costs of the service.
• At the global level, we conduct research on patterns of fuel subsidy reform. Using data on energy prices across countries and over time, our goal is to understand when and how governments can reform their energy subsidy policies – and sustain those reforms over time.