To pass (or not to pass) through international fuel price changes to domestic fuel prices in developing countries: What are the drivers?
نویسندگان
چکیده
This paper attempts to shed light on the drivers causing international fuel prices be passed through domestic retail prices. While many developing countries limit price pass prices, others do not. In former, large subsidies can emerge, thereby threatening fiscal sustainability, worsening income distribution and setting back efforts fight climate change. Against this backdrop, we examine factors that determine whether governments allow changes in using a dataset spanning 109 from 2000 2014. The finds pass-through is higher when are moderate less volatile. addition, flexibility of pricing mechanism allows for while exchange rate depreciation lower neighboring inhibit it. econometric results also underscore fact with inflation tend experience pass-through, whereas those high public debt exhibit larger pass-through. Finally, no evidence found political variables or environmental policies matter regard dynamics short-term. These findings, which consistent across products (gasoline, diesel kerosene), us draw important policy lessons subsidy reforms. • various shape world Pass-through Flexible narrow gap help. Low inflation, limited space, subdued matters. macro conditions conducive successful
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ژورنال
عنوان ژورنال: Energy Policy
سال: 2021
ISSN: ['1873-6777', '0301-4215']
DOI: https://doi.org/10.1016/j.enpol.2020.111999