IDEAS home Printed from https://ideas.repec.org/a/ris/buecqu/0010.html
   My bibliography  Save this article

Comparative analysis of the effects of 0, 20, 50, and 66.5% fuel subsidy removals on household wellbeing in Nigeria: A Structuralist CGE Approach

Author

Listed:
  • Odior, Ernest

    (Department of Economics, University of Lagos, Nigeria.)

Abstract

This study did a comparative study of the effects of 0, 20, 50 and 66.5% fuel subsidy removals on the wellbeing of household in Nigeria. By 0, 20, 50 and 66.5% fuel subsidy removals, the premium motor spirit (PMS) will sell at ₦97.00, ₦111.43, ₦133.07 and ₦145.00 respectively. Methodologically, the study used a Structuralist Computable General-Equilibrium (SCGE) model to run simulations that indicate the nature of the effects over the period 2015–2020. The comparative empirical findings from the results show that 0, 20, 50 and 66.5% increases in the pump price of fuel in Nigeria have different effects on household real income and household consumption. Specifically, the findings show that, both household real income and household consumption witnessed negative effects. This study recommends that there is need for targeted assistance to the poor by Nigerian government, under the conditions of declined oil price and fuel subsidy removal to enable them to mitigate the adverse consequences. But then, the government need to properly identify the households that are poor and develop a delivery mechanism for transfer of income and include other types of compensation that target the low income households.

Suggested Citation

  • Odior, Ernest, 2019. "Comparative analysis of the effects of 0, 20, 50, and 66.5% fuel subsidy removals on household wellbeing in Nigeria: A Structuralist CGE Approach," BizEcons Quarterly, Strides Educational Foundation, vol. 5, pages 22-44.
  • Handle: RePEc:ris:buecqu:0010
    as

    Download full text from publisher

    File URL: http://bequarterly.rysearch.com/wp-content/uploads/2019/12/Odior-2019.pdf
    File Function: Full text
    Download Restriction: olaniyievans@gmail.com
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications, The World Bank, number 6582.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saini, Shweta & Sharma, Sameedh & Gulati, Ashok & Hussain, Siraj & von Braun, Joachim, 2017. "Indian food and welfare schemes: Scope for digitization towards cash transfers," Discussion Papers 261791, University of Bonn, Center for Development Research (ZEF).
    2. Alejandro de la Fuente & Eduardo Ortiz-Juárez & Carlos Rodríguez-Castelán, 2018. "Living on the edge: vulnerability to poverty and public transfers in Mexico," Oxford Development Studies, Taylor & Francis Journals, vol. 46(1), pages 10-27, January.
    3. Mohajan, Haradhan, 2013. "Food, Agriculture and Economic Situation of Bangladesh," MPRA Paper 54240, University Library of Munich, Germany, revised 18 Aug 2013.
    4. Anne T. Kuriakose & Rasmus Heltberg & William Wiseman & Cecilia Costella & Rachel Cipryk & Sabine Cornelius, 2013. "Climate-Responsive Social Protection," Development Policy Review, Overseas Development Institute, vol. 31, pages 19-34, November.
    5. Miguel Nino-Zarazua, 2011. "Mexico’s Progresa-Oportunidades and the emergence of Social Assistance in Latin America," Global Development Institute Working Paper Series 14211, GDI, The University of Manchester.
    6. Michelle Harding & Chiara Martini & Alastair Thomas, 2014. "Taxing Energy Use in the OECD," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    7. Stoeffler, Quentin & Mills, Bradford & del Ninno, Carlo, 2016. "Reaching the Poor: Cash Transfer Program Targeting in Cameroon," World Development, Elsevier, vol. 83(C), pages 244-263.
    8. Armando Barrientos & Sony Pellissery, 2012. "Delivering effective social assistance: does politics matter?," Global Development Institute Working Paper Series esid-009-12, GDI, The University of Manchester.
    9. Castells-Quintana, David & del Pilar Lopez-Uribe, Maria & McDermott, Thomas K.J., 2018. "A review of adaptation to climate change through a development economics lens," Working Papers 309605, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    10. Hai‐Anh Dang & Dean Jolliffe & Calogero Carletto, 2019. "Data Gaps, Data Incomparability, And Data Imputation: A Review Of Poverty Measurement Methods For Data‐Scarce Environments," Journal of Economic Surveys, Wiley Blackwell, vol. 33(3), pages 757-797, July.
    11. Christophe Gouel, 2014. "Food Price Volatility and Domestic Stabilization Policies in Developing Countries," NBER Chapters, in: The Economics of Food Price Volatility, pages 261-306, National Bureau of Economic Research, Inc.
    12. repec:wbk:wbpubs:13079 is not listed on IDEAS
    13. Nga Thi Viet Nguyen & Felipe F. Dizon, 2017. "The Geography of Welfare in Benin, Burkina Faso, Côte d'Ivoire, and Togo," World Bank Other Operational Studies 27994, The World Bank.
    14. World Bank, 2011. "Philippines," World Bank Other Operational Studies 27384, The World Bank.
    15. Luc Christiaensen, 2009. "Revisiting the Global Food Architecture. Lessons from the 2008 Food Crisis," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(3), pages 3345-3361.
    16. World Bank, 2012. "Liberia - Public Expenditure Review : Human Development," World Bank Other Operational Studies 12313, The World Bank.
    17. Samantha Greenspun & Nora Lustig, 2013. "Gendered Fiscal Incidence Analysis. A Review of the Literature," Commitment to Equity (CEQ) Working Paper Series 76, Tulane University, Department of Economics.
    18. Backiny Yetna, Prosper Romuald, 2013. "Politiques publiques et pauvreté : trois études de cas d'évaluation des performances de ciblage et d'analyse d'impact," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/11794 edited by De Vreyer, Philippe, October.
    19. Woldu, Thomas & Abebe, Girum & Lamoot, Indra & Minten, Bart, 2013. "Urban food retail in Africa: The case of Addis Ababa, Ethiopia," ESSP working papers 50, International Food Policy Research Institute (IFPRI).
    20. Kluve, Jochen & Puerto, Susanna & Robalino, David & Romero, José Manuel & Rother, Friederike & Stöterau, Jonathan & Weidenkaff, Felix & Witte, Marc, 2016. "Do Youth Employment Programs Improve Labor Market Outcomes? A Systematic Review," Ruhr Economic Papers 648, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    21. Franziska Gassmann, 2011. "Protecting Vulnerable Families in Central Asia: Poverty, vulnerability and the impact of the economic crisis," Papers inwopa639, Innocenti Working Papers.

    More about this item

    Keywords

    Fuel subsidy; Household welfare; Comparative analysis; SCGE;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D60 - Microeconomics - - Welfare Economics - - - General
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:buecqu:0010. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://bizecons.hevanz.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Olaniyi Evans (email available below). General contact details of provider: https://bizecons.hevanz.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.