Oil Subsidy Research Articles

Developed Prototype of Truck Fuel Measurement System to Prevent Fraudulent Receipt of Oil Subsidy

Developed Prototype of Truck Fuel Measurement System to Prevent Fraudulent Receipt of Oil Subsidy

Empirical Analysis of Chinese Labor Supply Decisions from a Dynamic Perspective: Evidence from Hangzhou Cabdrivers

According to the life-cycle theory of labor supply, labor supply of workers responds positively to short-term wage volatility. However, many researches find the elasticity of foreign cabdrivers' labor supply to wages is negative. How about Chinese cabdrivers? This paper uses GPS trip information of Hangzhou cabs to investigate the endotaxy-based and extensionality-based labor supply of drivers. To address the endophytism problem caused by measurement error and peer effect, it uses the number of fares with long trips the drivers encounter that very day as the instrument variable for earnings per hour to analyze the influence of earnings per hour on drivers' labor supply. It argues that the elasticity of endotaxy-based and extensionality-based labor supply of Hangzhou cabdrivers to wages is significantly positive, showing that government policies such as the increase in oil subsidies are actually effective incentives to raise cabdrivers' labor supply. Meanwhile, it also implies that the release from the price regulation of taxi market can help drivers to optimize their work decisions better according to the market demands.

Has Petroleum Pricing Reform in China Achieved Its Objective? An Empirical Study

ABSTRACTChina’s petroleum pricing reform has started since 1998 and is still ongoing. It has a profound impact on China’s oil market and even global oil market. We quantitatively evaluate the effectiveness of the reform on two key issues. Has the pricing reform strengthened the linkage between the international crude market and China’s petroleum products market? Has the pricing reform magnified shocks to the international crude market on China’s economy? Our results show that the reform has strengthened the relationship between China’s petroleum prices and international crude price without negative influence on China’s economy, but the effect of China’s petroleum prices on international crude price is still limited. Furthermore, the reform helps the Chinese government reduce oil subsidies.

Impact of fossil fuel subsidy reform in China: estimations of household welfare effects based on 2007–2012 data

Changing the energy subsidy mechanism is a priority of China’s ongoing market-based energy reform. Using the 2007–2012 empirical data, this paper applies an input–output model to evaluate the welfare effects, that is, the expenditure increments of five income groups in 28 provinces, associated with the possible policy scenario of removing the subsidies for fossil fuels. The key findings of this study include, first, that the total indirect welfare effects (i.e. the additional money spent on non-energy commodities) are two-to-three times as large as the direct ones (i.e. the additional money spent on energy). Second, removing the oil subsidy leads to an additional expenditure of 19.74 CNY annually for each resident, which is much larger than the effect of removing the natural gas and coal subsidies. Third, the composition of the indirect effect varies significantly among income groups, because food expenditure contributes to approximately two-thirds of the total indirect effect on average. Finally, the welfare effect is very sensitive to the income level. To promote the smooth reform of the fossil fuel subsidies, we suggest that the government should deal with the coal industry initially, pay special attention to the indirect expense increase, and compensate low-income households for the welfare losses.

Effects of Structural Oil Shocks on Output, Exchange Rate, and Inflation in the BRICS Countries: A Structural Vector Autoregression Approach

ABSTRACTIn this study, we apply a structural vector autoregression (SVAR) model, combining the global crude oil market with each emerging economy, to investigate the effects of different types of oil shocks on industrial outputs, real exchange rates, and consumer price levels in each of the BRICS countries. The empirical results show that an oil supply shock has significant effects on Russia, while other countries are mainly influenced by an aggregate demand shock. Moreover, an oil-specific demand shock caused by expectation shifts or speculative activities is likely to induce a stagflation risk for China and India. However, these harmful effects are relatively delayed due to oil subsidies or price regulation measures.

Climate Change and Agricultural Productivity in Nigeria: An Econometric Analysis

The growing concern over the threat to world food security calls for a re-examination of the factors that affect agricultural productivity. This threat becomes more worrisome because of the high prevalence of diseases associated with hunger and poor nutrition intake. This paper examines the impact of climate change on agricultural productivity in Nigeria. Carbon emission was used to capture the effect of climate change. We examine the effect of climate change on the short-run and long-run productivity using the autoregressive distributed lag model (ARDL). Our regression result reveals that climate change has a long run impact on agricultural productivity. Other variables that significantly affect agricultural productivity are oil export, subsidy and consumer price index. To ensure food security and sustainable agricultural production in the future, the authors recommend that efforts should be geared towards reducing carbon emission. According to them, this can be achieved by placing disincentives like carbon tax on emission beyond the limits agreed at the Lima 2014 climate summit. Other methods proposed by the authors include: deemphasizing the importance of crude oil in the Nigerian economy, a reduction or an outright removal of agricultural subsidies and shielding farmers from adverse market conditions.

Using importers’ windfall savings from oil subsidy reform to enhance international cooperation on climate policies

Fossil fuel subsidy reform would not only decrease consumption, but also lower the world market price of traded fossil energy carriers, in particular oil. As a consequence, oil importers would lower their import bills by more than US$ 30 bn per year. Recycling at least a part of these savings to support low-carbon energy technologies in countries that reduce their subsidies could provide a mechanism to jointly incentivize transformation of the energy system and alter the political economy of subsidy reform.

Optimal Recycling Policy for Used Lubricating Oil: The Case of California’s Used Oil Management Policy

This paper develops a conceptual framework for the management of used oil that encompasses a tax (deposit) on manufactured oil and sector-specific subsidies (refunds) on producers who purchase recycled oil as an input in production. The framework mirrors the deposit-refund systems implemented in the used oil recycling programs of Italy, Spain, Australia and in the US State of California that favor re-refining uses over re-processing routes that lead to combustion of recycled oil as fuel. Our analysis considers environmental damage to arise jointly from improper disposal of used oil and from air pollution created by combustion of used oil. We demonstrate that the optimal policy involves a tax on manufactured oil and a subsidy of equal value on used oil collection irrespective of the ultimate end-use of used oil as re-refined lubricating oil or fuel oil. We derive policy implications to evaluate recently proposed changes to the management system for used oil in California.

Objectivity in Television News Reportage: An Evalution of “Occupy Nigeria Movement” (Oil Subsidy Protest)

The question of media objectivity in Nigeria has always been in doubt particularly in the area of reportage. It is in this regard that the study on the evaluation of news objectivity in television broadcast was x-rayed to identify the extent to which news objectivity is reliable and credible with a reason to expose the factors that affect news objectivity. To have scholarly perspectives on this issues, books, articles and journals were reviewed in order to have an insight and it was noticed that different scholars had different dimensions to these problems. Therefore, to effectively address these problems, the study analysed the views of two hundred and sixty-six (266) respondents within Jos South Local Government Area of Plateau State. Findings from the study indicated that television news reportage can be achieved only if the reporters observe their journalistic ethical guidelines, and are also allowed practice free without interference from media owners and government. The study suggests that with appropriate measures put in place it will curtail excesses in subjective report where objectivity in news reportage will be achieved.

Removing oil subsidies in Nigeria: between necessity and false economy

The rising costs of oil products on the global market and increasing dependency on fossil fuels have become a concern for both governments and international bodies. Aside from calls to governments to move towards alternatives in the form of renewable energy, the impact of government financial support to businesses in the oil sector in the form of subsides has also come under criticism. Advocates for oil subsidy removal argue that these subsidies only divert much needed investment in development projects especially in the developing economies, to rich players in the oil sector. In January 2012, the Nigerian government therefore announced its policy to remove the subsidies attached to oil products. The announcement was received with wide public protests which the government sought to calm with a 'Subsidy Reinvestment and Empowerment (SURE-P) programme'. This article considers the broad context of oil subsidy removal in Nigeria. It investigates the necessity behind the Nigerian government's oil subsidy removal policy and evaluates the practical economy of oil subsidy removal in this developing and mono (oil) dependent economy.

Uses of Social Media among Selected Labour Unions in Abuja during Nigeria’s (January 2012) “Oil Subsidy” Removal Protests

The removal of oil subsidy in Nigeria (January 2012) sparked protests across the country and a nationwide strike action organised by the Nigerian Labour Congress (NLC). This study examines the role of social media during these protests. This study ascertains why people in Nigeria used social media during the protests instead of other pre-existing media- radio, television, newspapers, magazines, etc. Furthermore, it identifies the purposes for which social media was used (and by whom) during the protest whether intended or otherwise. For instance, in what ways can social media influence public opinion/mobilise people and groups to protest? Using a survey the study finds that: social media was used during these protests because restrictions in other media stifle expressions of individual opinion in the public sphere. A significant percentage of the opinion expressed via social media during these protests was of frustration due to mismanagement and corruption by the Nigerian government. Pictures, factual/statistical evidence and intelligent analysis of issues were a persuasive force on social media which shaped public opinion and mobilised people to go out on the streets.

The Impact of Oil Subsidy Removal on Infrastructural Development in Nigeria (2000-2012)

Nigeria is a country blessed with large quantities of crude oil deposits, but the revenue generated from the oil has added little or nothing to the lives of Nigerians. More worrisome is the fact that the issue of oil subsidy removals by successive administrations has been a matter of controversy, as the proceeds from the removals have not impacted on the development of the country Rather, the bulk of the proceeds fritter away into private pockets, thus leaving the nation in state of decay and total neglect. This paper therefore, tries to examine the impact of oil subsidy removal on infrastructural development in Nigeria. It is therefore recommended that proceeds from subsidy removal should be monitored effectively so as to ensure that they are invested in critical infrastructural development of the country.

The Aftermath of the Conflict on Fuel Subsidy Removal in Nigeria

The removal of the subsidy on fuel by the Federal Government of Nigeria at the dawn of 1 st January, 2012 led to series of protests by the Labour Movement, Civil Society Groups Human Rights Activists and other Groups. The crisis eventually gravitated to a full blown strike which lasted for six consecutive days. In this paper, attempt is made to examine the arguments raised by the protagonists and opponents of the fuel subsidy removal, the role played by the various stakeholders before and during the strike and the economic loss incurred by the country within the duration of the conflict. Furthermore, the paper takes a look at the bribery scandal and other events that followed the submission of the House of Representatives Ad hoc probe panel report on the oil subsidy regime. A score board was drawn which shows a resultant win-win outcome by the parties. The paper concludes with recommendations that could avert reoccurrence of similar crisis in the future.

Impact of Fuel Oil Subsidy Increase Performance of Cutting and Regional

The purpose of writing this article is to investigate the impact of rising fuel subsidies to regional and sectoral performance, while at the regional sectors directly affected by the rise in fuel prices is transportation and industrial sectors while sectoral performance can lead to the creation of value-added industry experienced a decline in both the short term and long term. On a positive position to reduce the burden of government spending in the budget and allocated for development purposes and others. But with the fuel price hike is certain to lead to what is called a spiral effect. Spiral effect that will arise is the increase in prices of all goods and services. By looking at the negative side, indicating that the activity of the sector in the economy can not be separated from other sectors in the economy, so the policy is directly related to the sector will impact on regional aspects which in turn will affect the macro economy.

Modelling energy and labour linkages: A CGE approach with an application to Iran

We develop a unique dynamic CGE model suitable for analysing the policy interrelationships between fuels, crude oil and the labour market. Special emphasis is placed on the modelling of energies, crude oil, and the factors of production in the economy. To fully outline the model's features, we build simulations that hypothesize removing fuel and crude oil subsidies in an oil exporting economy to assess their effects on the labour market. The model allows for extensive treatment of transition dynamics, featuring gradual as well as immediate removal of the subsidies. We focus on constructing two alternative simulations applied to a purpose built Social Accounting Matrix (SAM) of the Iranian economy, with the revenue from subsidy elimination redistributed to households as extra income or into increased investment. The study pays particular attention to SAM data construction of energy goods and factors of production. In the specific case of Iran, the model shows that rebating the revenue from subsidy removals to households affects the labour market adversely, while channelling revenue into investment improves labour fortunes in the long run. The model is sufficiently detailed and encompassing to allow for further applications to other countries and energy–labour policy issues.

ANALISA KARAKTERISTIK KEUNGGULAN ETHANOL SEBAGAI SUMBER ENERGI ALTERNATIF PADA SEKTOR TRANSPORTASI

As the energy consumption continues to increase, while, the most of the energy consumption is met from oil, and the oil supply is going to limited; energy diversification is needed. Ethanol can be used as an option for the energy diversification. Ethanol is a renewable energy and environmentally friendly fuel which used as an energy alternative in the transportation sector can reduce the gasoline consumption. As gasoline is one of subsidized fuels and imported fuel, reducing gasoline consumption has also impact on reducing oil subsidy and import. As the ethanol has lower greenhouse gas of CO2, and pollutant emissions of CO, NOx, SO2, and particulate matters, ethanol utilization for energy is safe for human health and environment. Ethanol also has higher octane number and oxygen content that lead to better performance of the fuel and vehicle. Ethanol fuel program is also more creating job opportunities.

Obama in Question

Obama in Question

Fiscal year 2013 energy department budget: Proposed investments in clean energy research

Energy and environmental research programs generally fared well in President Barack Obama's proposed budget for the Department of Energy (DOE) for fiscal year (FY) 2013. In his State of the Union address, Obama called for the United States to pursue an “all of the above” energy strategy that includes fossil fuels, as well as a variety of renewable sources of energy. The DOE budget request supports that strategy, Energy Secretary Steven Chu said in a 13 February press briefing announcing the budget proposal. The proposed budget gives DOE $27.2 billion overall, a 3.2% increase from the FY 2012 enacted budget (see Table 1). This budget “reflects some tough choices,” Chu said. The proposed budget would cut $4 billion in subsidies for oil and gas companies; many Republican members of Congress have already indicated that they oppose such cuts, suggesting that congressional approval of this budget may run into stumbling blocks. The budget would also cut funding for research and development projects that are already attracting private‐sector investment or that are not working, and would reduce some of the department's operational costs.

Fossil Fuels - At What Cost? Government Support for Upstream Oil and Gas Activities in Russia

The report represents the first inventory of subsidies to upstream oil and gas activities in Russia according to an international methodology developed by the Global Subsidies Initiative of the International Institute for Sustainable Development. At the federal level, the paper identifies 30 such subsidy schemes in 2009 and 2010; and quantifies the value of 17 of these, amounting in 2009 to US$ 8.1 billion and in 2010 to US$ 14.4 billion. The report also considers possible future trends in oil and gas subsidies in Russia. The report concludes with a discussion of economic and environmental outcomes of the existing subsidies against their policy objectives. The study aims to increase transparency of government subsidies to fossil fuels in Russia and provide a basis for an informed debate about opportunities to “rationalize and phase out over the medium term inefficient fossil-fuel subsidies that encourage wasteful consumption” in accordance with the commitments Russia has undertaken as a member of G-20 and the Asia-Pacific Economic Cooperation and in view of the country’s accession to the Organisation for Economic Co-operation and Development. The report is addressed to responsible agencies in the Russian government, academia, business and civil society organizations, and international stakeholders.

Yemen: Descending into Despair

Yemen: Descending into Despair