Public governance

Energy Subsidy Reform in the Republic of Moldova

Energy Affordability, Fiscal and Environmental Impacts

In series:Green Finance and Investmentview more titles

Published on October 18, 2018

Also available in: Romanian

book

This report looks at the fiscal, environmental and social impacts of energy subsidy reform in Moldova with a particular focus on energy affordability. Reduced value added tax (VAT) rate on natural gas consumption and a VAT exemption on electricity and heat consumption by domestic users represent the largest fossil-fuel consumer subsidies in Moldova. Reforming these will imply an increase of the VAT rate, which will lead to an increase of gas, electricity and heat tariffs for households, and will in turn affect household consumption levels, related expenditures and energy affordability. If reform measures are to work, they will need to be accompanied by a carefully-designed social policy to protect poor households.

TABLE OF CONTENTS

Foreword
Executive summary
Moldova's energy subsidy reform: key analytical premises
Measuring energy poverty and ways to protect vulnerable groups in the European Union
Moldova's energy prices and energy affordability
Avoiding energy poverty in Moldova
Modelling the impacts of energy subsidy reform in Moldova
Conclusions and recommendations for Moldova
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