Labeaga Azcona, José MaríaLabandeira, XavierLópez Otero, Xiral2025-01-242025-01-242021Labeaga JM, Labandeira X, López-Otero X. Energy taxation, subsidy removal and poverty in Mexico. Environment and Development Economics. 2021;26(3):239-260. doi:10.1017/S1355770X200003641355-770X | eISSN 1469-4395https://doi.org/10.1017/S1355770X20000364https://hdl.handle.net/20.500.14468/25502This is the preprint of an article published by Cambridge University Press in Environment and Development Economics. 2021;26, available online: https://doi.org/10.1017/S1355770X20000364 Este es el manuscrito aceptado de un artículo publicado por Cambridge University Press en Environment and Development Economics. 2021;26, disponible en línea: https://doi.org/10.1017/S1355770X20000364Equity and efficiency are crucial issues behind any tax reform, but they are particularly relevant in countries with high inequality and large shares of poverty. This paper provides a comprehensive socio-economic empirical assessment of Mexico's proposed (and partially implemented) tax reforms in the energy domain, and of a hypothetical partial removal of existing electricity subsidies. Using a rich household income and expenditure survey within the context of a demand system adjustment of non-durable goods, the article provides the public-revenue, environmental and distributional impacts from the simulation of different combinations of energy taxation, subsidy-removal and distributive offsets. The paper also provides detailed ex-ante evidence on the effects of compensatory devices that may contribute to the successful implementation of energy reform packages and significant poverty alleviation in Mexico.eninfo:eu-repo/semantics/openAccess53 Ciencias Económicasartículodistributionemissionsequitysubsidy