Ändra sökning
RefereraExporteraLänk till posten
Permanent länk

Direktlänk
Referera
Referensformat
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Annat format
Fler format
Språk
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Annat språk
Fler språk
Utmatningsformat
  • html
  • text
  • asciidoc
  • rtf
Simulation of price controls for different grade of gasoline: The case of Indonesia
Colorado School of Mines.
Luleå tekniska universitet, Institutionen för ekonomi, teknik och samhälle, Samhällsvetenskap. Mineral and Energy Economics Program and Payne Institute of Earth Resources, Division of Economics and Business, Colorado School of Mines, Golden, CO .
2017 (Engelska)Ingår i: Energy Economics, ISSN 0140-9883, E-ISSN 1873-6181, Vol. 68, s. 373-382Artikel i tidskrift (Refereegranskat) Published
Abstract [en]

A gasoline subsidy is one of the most prevalent strategies for distributing welfare to the people in oil-producing countries. However well-intentioned, the policy will distort the gasoline market with the resulting inefficiencies. Furthermore, the gasoline subsidy takes a great amount of government's budget. Arguably, these funds could be spent elsewhere with a greater impact on economic growth. These governments are aware of the cost of such a policy, yet face difficulties in removing the policy because of strong resistance from the public. This paper looks at the unique case of Indonesia that only provides a subsidy for regular gasoline and in turn proposes an alternative policy that introduces a subsidy for premium gasoline at a lower rate to reduce the overall gasoline subsidy cost. There has yet to be any research that simulates price controls for gasoline with different grades. The aggregate demand for gasoline in Indonesia is replicated using a translog cost calibration approach. Simulations based on the calibrated demand are then performed and the results confirm the existence of potential savings that are largely determined by the cross-price elasticities between regular and premium gasoline. The benchmark scenario, based on a recent study of substitutability between gasoline by grades, results in an 11.5% reduction in subsidy cost of around 950 million USD with a subsidy rate of Rp 2254/liter. Furthermore, the optimal rate of subsidy for premium gasoline results in a reduction of inefficiency as consumers' welfare increase by 6.8 trillion rupiahs (or 560 million USD).

Ort, förlag, år, upplaga, sidor
Elsevier, 2017. Vol. 68, s. 373-382
Nationell ämneskategori
Nationalekonomi
Forskningsämne
Nationalekonomi
Identifikatorer
URN: urn:nbn:se:ltu:diva-66470DOI: 10.1016/j.eneco.2017.10.012ISI: 000418208100030OAI: oai:DiVA.org:ltu-66470DiVA, id: diva2:1155485
Anmärkning

Validerad;2017;Nivå 2;2017-11-08 (andbra)

Tillgänglig från: 2017-11-08 Skapad: 2017-11-08 Senast uppdaterad: 2018-01-11Bibliografiskt granskad

Open Access i DiVA

Fulltext saknas i DiVA

Övriga länkar

Förlagets fulltext

Personposter BETA

Dahl, Carol

Sök vidare i DiVA

Av författaren/redaktören
Dahl, Carol
Av organisationen
Samhällsvetenskap
I samma tidskrift
Energy Economics
Nationalekonomi

Sök vidare utanför DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetricpoäng

doi
urn-nbn
Totalt: 91 träffar
RefereraExporteraLänk till posten
Permanent länk

Direktlänk
Referera
Referensformat
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Annat format
Fler format
Språk
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Annat språk
Fler språk
Utmatningsformat
  • html
  • text
  • asciidoc
  • rtf