TY  - RPRT
        AU  - Bacarreza, Gustavo J. Canavire
AU  - Ervin, Lyliana Gayoso de
AU  - Galeano, Juan José
AU  - Baquero, Juan Pablo
        TI  - Understanding the Distributional Impacts of Increases in Fuel Prices on Poverty and Inequality in Paraguay
        PY  - 2023/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15922
        UR  - https://www.iza.org/publications/dp15922
        AB  - The recent global increases in fuel prices threaten the gains in poverty reduction that countries like Paraguay have achieved over the past few decades. Therefore, policy makers must understand the potential distributional impacts of increases in fuel prices to evaluate the implementation of alternative measures that could mitigate these impacts. This paper analyzes the potential effects of fuel prices on poverty and inequality in Paraguay. Using microsimulation methods and based on the Commitment to Equity framework, it estimates the impact of higher fuel prices on welfare, poverty, and inequality based on three scenarios: (a) increases in gasoline prices, (b) increases in diesel prices, and (c) simultaneous increases in gasoline and diesel prices. The results obtained suggest that the total impact of increasing fuel prices tends to be more regressive in Paraguay. At the same time, the results of the simulations indicate small effects on income inequality.

        KW  - fuel prices
KW  - poverty
KW  - inequality
KW  - Paraguay
        ER  -