About Rimawan PradiptyoRimawan Pradiptyo is a senior lecturer in economics at the Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada, Indonesia. He earned his Ph.D in economics from the University of York, UK. His research interests are in Behavioural Economics, Applied Game Theory, Environmental Economics, Law and Economics, and Economic Evaluation.
By Rimawan Pradiptyo. Posted October 30, 2012
Although it is widely considered to be an ineffective policy, a number of developing countries offer universal fuel subsidies. However, the prolonged implementation of fuel subsidies creates a misallocation of resources as a subsidy targets the fuel rather than the consumer. Consequently, fuel subsidies benefit the affluent more than the poor. A number of countries implement fuel subsidies, including Algeria, the People’s Republic of China, Ecuador, Egypt, Indonesia Iran, Iraq, Malaysia, Nigeria, Russia, Saudi Arabia, Thailand, and Venezuela. Granado et al (2010) reported that in countries that have subsidized fuel, on average, the top income quintile consumed about six times more subsidized fuel than the bottom quintile. Read more.
Search Asia Pathways
Subscribe / Connect
- Measuring the systemic risk contribution of international mutual funds
- RCEP – a life raft for trade liberalization in Asia
- India: The rising star on the world’s energy horizon
- Impact of a possible growth slowdown of the People’s Republic of China on emerging Asia: A general equilibrium analysis
- E-government as a vehicle to reduce white-collar crimes
Receive ADBI's daily e-newsline for unparalleled breadth of coverage on development topics from across Asia and the Pacific.