The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia
Crude oil price hikes have compelled governments of developing countries to let domestic prices of energy increase. Fiscal priorities made it impossible to fully compensate the hikes by raising energy subsidies. This paper examines the potential impacts of a limited deregulation of the petroleum pri...
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| Format: | Article |
| Language: | English |
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Elsevier
2016
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| Online Access: | http://psasir.upm.edu.my/id/eprint/53024/ http://psasir.upm.edu.my/id/eprint/53024/1/The%20impacts%20of%20petroleum%20price%20fluctuations%20on%20income%20distribution%20across%20ethnic%20groups%20in%20Malaysia.pdf |
| _version_ | 1848852196705173504 |
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| author | Saari, M. Yusof Dietzenbacher, Erik Los, Bart |
| author_facet | Saari, M. Yusof Dietzenbacher, Erik Los, Bart |
| author_sort | Saari, M. Yusof |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Crude oil price hikes have compelled governments of developing countries to let domestic prices of energy increase. Fiscal priorities made it impossible to fully compensate the hikes by raising energy subsidies. This paper examines the potential impacts of a limited deregulation of the petroleum price on the income distribution in Malaysia, paying specific attention to differences in impacts on major ethnic groups. We introduce an extended social accounting matrix (SAM) model, which not only incorporates substitution possibilities among production inputs and consumption goods, but also allows for the exogenous determination of the price of intermediate inputs. The results of simulations indicate that distributional impacts of rising petroleum prices tend to be regressive, affecting poor people more severely than richer people. All ethnic groups experience income loss with the real incomes of Malay households (which are relatively poor, on average) more than the Chinese and Indian households (which are the generally richer). |
| first_indexed | 2025-11-15T10:34:14Z |
| format | Article |
| id | upm-53024 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:34:14Z |
| publishDate | 2016 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-530242017-11-17T01:39:10Z http://psasir.upm.edu.my/id/eprint/53024/ The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia Saari, M. Yusof Dietzenbacher, Erik Los, Bart Crude oil price hikes have compelled governments of developing countries to let domestic prices of energy increase. Fiscal priorities made it impossible to fully compensate the hikes by raising energy subsidies. This paper examines the potential impacts of a limited deregulation of the petroleum price on the income distribution in Malaysia, paying specific attention to differences in impacts on major ethnic groups. We introduce an extended social accounting matrix (SAM) model, which not only incorporates substitution possibilities among production inputs and consumption goods, but also allows for the exogenous determination of the price of intermediate inputs. The results of simulations indicate that distributional impacts of rising petroleum prices tend to be regressive, affecting poor people more severely than richer people. All ethnic groups experience income loss with the real incomes of Malay households (which are relatively poor, on average) more than the Chinese and Indian households (which are the generally richer). Elsevier 2016-10 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/53024/1/The%20impacts%20of%20petroleum%20price%20fluctuations%20on%20income%20distribution%20across%20ethnic%20groups%20in%20Malaysia.pdf Saari, M. Yusof and Dietzenbacher, Erik and Los, Bart (2016) The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia. Ecological Economics, 130. pp. 25-36. ISSN 0921-8009 http://www.elsevier.com/locate/issn/09218009 10.1016/j.ecolecon.2016.05.021 |
| spellingShingle | Saari, M. Yusof Dietzenbacher, Erik Los, Bart The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia |
| title | The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia |
| title_full | The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia |
| title_fullStr | The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia |
| title_full_unstemmed | The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia |
| title_short | The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia |
| title_sort | impacts of petroleum price fluctuations on income distribution across ethnic groups in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/53024/ http://psasir.upm.edu.my/id/eprint/53024/ http://psasir.upm.edu.my/id/eprint/53024/ http://psasir.upm.edu.my/id/eprint/53024/1/The%20impacts%20of%20petroleum%20price%20fluctuations%20on%20income%20distribution%20across%20ethnic%20groups%20in%20Malaysia.pdf |