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Controlling Policies on Fossil Fuels Subsidies to Overcome Climate Change


  • Biatna Dulbert Tampubolon

    (National Standardization Agency of Indonesia, Technische Universit?t Berlin Marchstra?e 23 D-10587 Berlin)

  • Ajun Tri Setyoko

    (National Standardization Agency of Indonesia, BPPT Build. 12 Fl., Jl. MH. Thamrin No. 8 Jakarta, Indonesia)


The Indonesian government faces the challenge to provide energy at affordable prices and able to meet national energy needs. Government policies provide energy subsidies to reduce consumer expenses and ease production costs borne by energy producers. However, this adds to the burden of the state and also increases greenhouse gas emissions. Sometimes subsidies are often used as a powerful political program to gain support from the community. This study attempts to review the various literature on energy and environmental policies discussed which will be identified as ?opportunities? that may be adopted by Indonesia, especially from G20 members and others. The policy of controlling energy subsidies should continue to be enhanced and comprehensive, for example, limiting the use of subsidized fuel with direct and closed distribution (learning from India), adjusting subsidized retail prices, and in line with affordable public transport. The use of the degraded land would be more productive to absorb carbon from the atmosphere and generate biofuel energy than the transfer of forest. The government necessary provides substantial subsidies for the development of new energy sources (learning from Russia and the United States) and renewable energy programs, including the construction of pipelines for gas and other energy. The government invites the private and public sectors to engage in the development of renewable energy such as Europe.

Suggested Citation

  • Biatna Dulbert Tampubolon & Ajun Tri Setyoko, 2019. "Controlling Policies on Fossil Fuels Subsidies to Overcome Climate Change," Energy Economics Letters, Asian Economic and Social Society, vol. 6(1), pages 1-16, March.
  • Handle: RePEc:asi:eneclt:2019:p:1-16

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    References listed on IDEAS

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    Cited by:

    1. Asrori Asrori & Muhammad Ihlashul Amal & Atta Putra Harjanto, 2019. "Company Characteristics on the Corporate Social Reporting Index of Corporate Social and Environmental Disclosure in Indonesian Public Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 481-488.

    More about this item


    Subsidies; Policy; Energy; Environment; Emission.;

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming


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