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Notes on the climate: How countries influence fuel prices

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  • Darko Jus
  • Jana Lippelt

Abstract

Fuel prices worldwide are influenced by government intervention in the form of taxes and subsidies. Most states have now implemented taxes, and only a few, especially some oil exporting countries, subsidise fuel. But even in these countries, there is an increasing trend towards the abolition of the highly expensive subsidies. The article provides an overview of the reasons for government intervention in price formation, and shows what countries tax and what countries subsidise fuels.

Suggested Citation

  • Darko Jus & Jana Lippelt, 2011. "Notes on the climate: How countries influence fuel prices," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(15), pages 48-52, August.
  • Handle: RePEc:ces:ifosdt:v:64:y:2011:i:15:p:48-52
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    File URL: https://www.ifo.de/DocDL/ifosd_2011_15_8.pdf
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    References listed on IDEAS

    as
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    2. Zilberman, David & Hochman, Gal & Kaplan, Scott & Kim, Eunice, 2014. "Political Economy of Biofuel," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 29(1), pages 1-6.
    3. Baumol, William J & Bradford, David F, 1970. "Optimal Departures from Marginal Cost Pricing," American Economic Review, American Economic Association, vol. 60(3), pages 265-283, June.
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    More about this item

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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