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.
Subscribe / Connect to Asia Pathways
- Agriculture and rural development
- Information and Communications Technology
- Poverty Reduction
- Public-Private Partnership
- Regional Cooperation
- Social Development and Poverty
- Video Blog
- Minimizing the Cost of Fecal Sludge Management through Co-Treatment
- FDI and Its Impacts on Entrepreneurship and Informal Markets: A Double-Edged Sword?
- Will Financial Liberalization Trigger the First Crisis in the People’s Republic of China?
- Green bonds experience in the Nordic countries
- One Belt One Road and the Risks Behind the Win-Win Situation
- Energy strategies must consider all parts of the ‘energy trilemma’ on
- Exploring the trade–urbanization nexus in developing economies: evidence and implications on
- Escaping the middle income trap: Innovate or perish on
- Hometown investment trust funds: A sustainable solution for financing green energy projects on
- Why is Income Distributed Unequally? A Comparison of Japan and the United States on