Real and Distributive Effects of Petroleum Price Liberalization: The Case of Indonesia

By Benedict Clements, Hong-Sang Jung, S. Gupta. Social Science Research Network, 2003

124 citations recorded by the source corpus.

The impact of higher petroleum prices on the aggregate price level, real growth, and income distribution is appraised within a multisector computable general equilibrium (CGE) model. A reduction in the government subsidy raises petroleum prices and production costs throughout the economy. Consumer demand, production, and income decline as output prices increase and consumer purchasing power decreases. The model is applied to and calibrated for Indonesia. The simulated results predict a slight increase in price level and a slight decrease in output. An important result is that urban household groups will be the most significantly affected by the subsidy reduction.

Subfields: Economics and Econometrics, Gender Studies, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/2e24bf58d1c90b1b842c9b898fc0a055eec5117f

Citations in the corpus

• Working Papers in Trade and Development The Economy-wide Impact of Controlling Energy Consumption in Indonesia: An Analysis Using a Social Accounting Matrix Framework (2007, unknown): “(2005), Clements et al. (2007),”