 Policy lessons from the execution of fuel dual-pricing: Insights for fuel-subsidizing economiesMehdi Majidpour Energy, 2022, vol. 247, issue C Abstract: This paper for the first time systematically examines fuel dual-pricing policy (FDPP) in the context of developing countries. Governments in most of these countries pay a heavy price for subsidizing fossil fuels and thus, most of these countries suffer from adverse economic, social and environmental consequences. In these circumstances, governments cannot take the risk of social unrest and economic shock by quickly removing fuel subsidies. FDPP can be addressed as a transitional policy to liberalize fuel prices. However, the literature fails miserably to address the dynamics of FDPP execution due to the lack of valid empirical data. Accurate analysis making use of long-term valid data could shed light on this dilemma. Through a scenario planning approach, this study evaluates the positive and negative impacts of executing or terminating FDPP. In general, it is concluded that, despite difficulties in formulation and implementation, FDPP has the potential for several positive economic and environmental effects through which fuel-subsidizing economies can employ FDPP as a transition pathway to liberalizing fuel prices. Keywords: Fuel subsidy; Subsidy reform; Economic policy analysis; Dual pricing; Fuel rationing; Iran (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:247:y:2022:i:c:s0360544222003838 DOI: 10.1016/j.energy.2022.123480 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.