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Fossil Fuel Subsidies in Thailand: Trends, Impacts, and Reforms

Author

Listed:
  • Asian Development Bank (ADB)
  • Asian Development Bank (ADB)

    (Economic Research and Regional Cooperation Department, ADB)

  • Asian Development Bank (ADB)

    (Economic Research and Regional Cooperation Department, ADB)

  • Asian Development Bank (ADB)
Abstract
Heavily dependent on imported energy sources, significant subsidies on fossil fuels present a heavy burden on public finances in Thailand. This study measures the size of fossil fuel subsidies such as tax breaks for diesel and natural gas, market price support for natural gas for vehicles, and free electricity for low income consumers as well as the potential economic, energy, and environmental impacts of reducing them. With adequate reallocation of subsidy savings, the short-term adverse impacts of subsidy reform are shown to turn positive in the long term as households and industry respond to changing market realities by adjusting energy demand, supply, and production capacity. The study offers policy advice for sustainable energy use to help guide Thailand’s reform strategies.

Suggested Citation

  • Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB), 2015. "Fossil Fuel Subsidies in Thailand: Trends, Impacts, and Reforms," ADB Reports RPT157695-2, Asian Development Bank (ADB).
    • Handle: RePEc:asd:wpaper:rpt157695-2
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    Citations

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    Cited by:

    1. Korrakot Phomsoda & Nattapong Puttanapong & Mongkut Piantanakulchai, 2021. "Economic Impacts of Thailand’s Biofuel Subsidy Reallocation Using a Dynamic Computable General Equilibrium (CGE) Model," Energies, MDPI, vol. 14(8), pages 1-21, April.
    2. Narita, Daiju & Oanh, Nguyen Thi Kim & Sato, Keiichi & Huo, Mingqun & Permadi, Didin Agustian & Chi, Nguyen Nhat Ha & Ratanajaratroj, Tanatat & Pawarmart, Ittipol, 2019. "Pollution Characteristics and Policy Actions on Fine Particulate Matter in a Growing Asian Economy: The Case of Bangkok Metropolitan Region," Open Access Publications from Kiel Institute for the World Economy 231375, Kiel Institute for the World Economy (IfW Kiel).
    3. Vietha Devia SS, 2019. "Analysis of Crude Oil Price and Exchange Rate Volatility on Macroeconomic Variables (Case Study of Indonesia as Emerging Economic Country)," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 5(5), pages 257-271.
    4. Thitisak Boonpramote, 2017. "Impact Analysis of Removing Petroleum Product Subsidies in Thailand," Chapters, in: Han Phoumin & Shigeru Kimura (ed.), Institutional Policy and Economic Impacts of Energy Subsidies Removal in East Asia, chapter 3, pages 33-60, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Muhammad Iqbal Nugraha, 2019. "Analyzing the Energy Intensity Trend in Indonesia, using Econometric and Decomposition Analysis," Working Papers in Economics and Development Studies (WoPEDS) 201901, Department of Economics, Padjadjaran University, revised Nov 2019.
    6. Maulidia, Martha & Dargusch, Paul & Ashworth, Peta & Ardiansyah, Fitrian, 2019. "Rethinking renewable energy targets and electricity sector reform in Indonesia: A private sector perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 231-247.
    7. Moghaddam, Hussein & Wirl, Franz, 2018. "Determinants of oil price subsidies in oil and gas exporting countries," Energy Policy, Elsevier, vol. 122(C), pages 409-420.
    8. Saelim, Supawan, 2019. "Carbon tax incidence on household consumption: Heterogeneity across socio-economic factors in Thailand," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 159-174.
    9. Hadi Sasana & F. Salman & Suharnomo Suharnomo & S. B. M. Nugroho & A. G. Edy Yusuf, 2018. "The Impact of Fossil Energy Subsidies on Social Cost in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 168-173.

    More about this item

    Keywords

    thailand; fossil fuel; energy; fossil fuel subsidies; greenhouse gas emissions; diesel; natural gas; energy use; economic impacts; social programs; developing asia;
    All these keywords.

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