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To date, prices of gas and other energy used by households in Ukraine have been generously subsidized by the Government. However, suppressed energy prices lead to excessive use of gas and an inefficient level of investment into energy savings. In addition, Ukraine’s dependence on imported gas contributes to trade imbalances and growing pressure on the devaluation of the national currency. In 2010, the government announced an ambition reform agenda, including the raise of gas prices as a means to restore economic growth. Such policy, however, may have unprecedented impact on the welfare of the population. Part of the PEP-UNDP "Poverty and Social Impact Analysis" (PSIA) initiative, this particular project aimed at assessing the extent of such impact, as well as the effectiveness of current social welfare programs in mitigating the negative effects for the poorest households. Find out all about the researchers' methods, findings and policy recommendations through the following PEP publication (working paper):

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