Assessing policy trade-offs with easy-to-use models in PERs : examples from the energy sector

In this note, we summarize three energy sector models used in Lebanon, Kosovo and the Comoros, three countries that had significant energy-sector challenges and limited fiscal space available to finance solutions. Public Expenditure Reviews (PERs) can help governments to learn from past experiences to identify future risks and improve future resource allocation. Sometimes this can involve taking difficult decisions. Developing easy-to-use ‘tools’ that highlight the impacts (pros and cons) of different policy options can bring more clarity to difficult decision-making. This note presents the experiences of three PERs that developed models to show the impact of energy policy options. Each model was designed to address the specific challenges faced by each country to ensure relevance and facilitate policy dialogue.