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dc.contributor.authorOlivia, Susan
dc.contributor.authorGibson, John
dc.date.accessioned2008-12-15T01:07:47Z
dc.date.available2008-12-15T01:07:47Z
dc.date.issued2006-08
dc.identifier.citationOlivia, S. & Gibson, J. (2006). Household energy demand and the equity and efficiency aspects of subsidy reform in Indonesia. (Department of Economics Working Paper Series, Number 6/06). Hamilton, New Zealand: University of Waikato.en_US
dc.identifier.urihttps://hdl.handle.net/10289/1635
dc.description.abstractThe proper design of price interventions in energy markets requires consideration of equity and efficiency effects. In this paper, budget survey data from 29,000 Indonesian households are used to estimate a demand system for five energy sources, which is identified by the spatial variation in unit values (expenditures divided by quantities). We correct for the various quality and measurement error biases that result when unit values are used as proxies for market prices. The price elasticities are combined with tax and subsidy rates to calculate the marginal social cost of price changes for each item. The results suggest that even with high levels of inequality aversion there is a case for reducing the large subsidies on kerosene in Indonesia, supporting the reforms that have been announced recently.en_US
dc.format.mimetypeapplication/pdf
dc.language.isoen
dc.relation.ispartofseriesDepartment of Economics Working Paper Series
dc.subjectdemand elasticitiesen_US
dc.subjectenergyen_US
dc.subjectsubsidiesen_US
dc.subjectunit valuesen_US
dc.titleHousehold energy demand and the equity and efficiency aspects of subsidy reform in Indonesiaen_US
dc.typeWorking Paperen_US
uow.relation.series6/06


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