An Economic Analysis Of Raising Fuel Price In Indonesia
ABSTRACT This paper outlines economic frameworks for analyzing the impact of increasing fuel price on the Indonesian economy. The discussions focus on the analysis of inter-fuels substitution, impact of raising fuel price on cost of productions and on the air quality, and the potential benefits-cost...
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| Format: | Article |
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[Yogyakarta] : Universitas Gadjah Mada
1998
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| _version_ | 1826032804308189184 |
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| author | Perpustakaan UGM, i-lib |
| author_facet | Perpustakaan UGM, i-lib |
| author_sort | Perpustakaan UGM, i-lib |
| collection | UGM |
| description | ABSTRACT
This paper outlines economic frameworks for analyzing the impact of increasing fuel price on the Indonesian economy. The discussions focus on the analysis of inter-fuels substitution, impact of raising fuel price on cost of productions and on the air quality, and the potential benefits-costs from the mentioned policy. The responsiveness of emission with respect to fuel prices makes fuel prices a powerful tool in the kit of indirect policy instruments available to the policy maker.
Several empirical researches show that fuel price can be formulated to induce inter-fuel substitution to reduce the pollution and not necessarily induce high inflation. However, increase in prices for pollution-laden fuels will generally lead to demand reduction, and the net effect on emission will depend on: whether other fuels will produce lesser pollutant, their cross price elasticities are positive, and which fuel share in the total input used are high (the higher the share offuel the lesser the price elasticity - need higher percentage change in price to decrease the use of such firel).
The impacts offuel price policy on the Indonesian government budget is examined through change in the government revenue, both from the direct revenue of oils and natural gas sectors and taxation.. Lastly, the fuel price policy could be directed to increase the air quality which beneficial for human being.
Key words: fuel pricing, inter-fuel substitution, emission elasticity, dose-response, pollution. |
| first_indexed | 2024-03-13T18:59:49Z |
| format | Article |
| id | oai:generic.eprints.org:26264 |
| institution | Universiti Gadjah Mada |
| last_indexed | 2024-03-13T18:59:49Z |
| publishDate | 1998 |
| publisher | [Yogyakarta] : Universitas Gadjah Mada |
| record_format | dspace |
| spelling | oai:generic.eprints.org:262642014-06-18T00:36:48Z https://repository.ugm.ac.id/26264/ An Economic Analysis Of Raising Fuel Price In Indonesia Perpustakaan UGM, i-lib Jurnal i-lib UGM ABSTRACT This paper outlines economic frameworks for analyzing the impact of increasing fuel price on the Indonesian economy. The discussions focus on the analysis of inter-fuels substitution, impact of raising fuel price on cost of productions and on the air quality, and the potential benefits-costs from the mentioned policy. The responsiveness of emission with respect to fuel prices makes fuel prices a powerful tool in the kit of indirect policy instruments available to the policy maker. Several empirical researches show that fuel price can be formulated to induce inter-fuel substitution to reduce the pollution and not necessarily induce high inflation. However, increase in prices for pollution-laden fuels will generally lead to demand reduction, and the net effect on emission will depend on: whether other fuels will produce lesser pollutant, their cross price elasticities are positive, and which fuel share in the total input used are high (the higher the share offuel the lesser the price elasticity - need higher percentage change in price to decrease the use of such firel). The impacts offuel price policy on the Indonesian government budget is examined through change in the government revenue, both from the direct revenue of oils and natural gas sectors and taxation.. Lastly, the fuel price policy could be directed to increase the air quality which beneficial for human being. Key words: fuel pricing, inter-fuel substitution, emission elasticity, dose-response, pollution. [Yogyakarta] : Universitas Gadjah Mada 1998 Article NonPeerReviewed Perpustakaan UGM, i-lib (1998) An Economic Analysis Of Raising Fuel Price In Indonesia. Jurnal i-lib UGM. http://i-lib.ugm.ac.id/jurnal/download.php?dataId=9284 |
| spellingShingle | Jurnal i-lib UGM Perpustakaan UGM, i-lib An Economic Analysis Of Raising Fuel Price In Indonesia |
| title | An Economic Analysis Of Raising Fuel Price In Indonesia |
| title_full | An Economic Analysis Of Raising Fuel Price In Indonesia |
| title_fullStr | An Economic Analysis Of Raising Fuel Price In Indonesia |
| title_full_unstemmed | An Economic Analysis Of Raising Fuel Price In Indonesia |
| title_short | An Economic Analysis Of Raising Fuel Price In Indonesia |
| title_sort | economic analysis of raising fuel price in indonesia |
| topic | Jurnal i-lib UGM |
| work_keys_str_mv | AT perpustakaanugmilib aneconomicanalysisofraisingfuelpriceinindonesia AT perpustakaanugmilib economicanalysisofraisingfuelpriceinindonesia |