One could establish that social protection measures may cushion energy price shocks. However, social protection measures in the absence of macro — or sectoral — reforms are not fiscally sustainable. Malaysia’s energy sector has undertaken various reforms in the recent past. Similarly, reforms in the electricity supply industry have been implemented, with the Energy Commission practising incentive-based regulation of the electricity sector since 2014. Why is the prevailing emphasis on social safety nets a first resort to managing the fallout of energy prices?

Source: The Edge Markets June 02, 2022 18:25 UTC