Energy subsidy and oil price fluctuation, and price behavior in Malaysia : A time series analysis
Balancing between favorable energy subsidy and the financial burden of government is crucial for policymakers. This article intends to advance this thinking by informing policymakers about how price reacts to changes in the international oil price and energy subsidy program. Hence, it is essential...
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my.unimas.ir.232482021-04-01T07:29:22Z http://ir.unimas.my/id/eprint/23248/ Energy subsidy and oil price fluctuation, and price behavior in Malaysia : A time series analysis Dzul Hadzwan, Husaini Puah, Chin Hong Lean, Hooi Hooi HB Economic Theory HJ Public Finance Balancing between favorable energy subsidy and the financial burden of government is crucial for policymakers. This article intends to advance this thinking by informing policymakers about how price reacts to changes in the international oil price and energy subsidy program. Hence, it is essential to investigate the empirical evidence concerning the relationship between the international oil price and energy subsidy, and price behavior. This study used time series data covering the period 1981e2015 to explore the price behavior on energy subsidy rationalization and oil price fluctuation in Malaysia. To prepare concrete empirical evidence, we employed the autoregressive distribution lag (ARDL) approach to capture the long-run dynamic behavior. Our findings indicated that both factors, oil price and energy subsidy, are significant in influencing the pattern of price behavior. The PPI (Producer Price Index) was more sensitive to changes in the oil price than the CPI (Consumer Price Index). The PPI was found to be affected more while the CPI was less affected. We call on policymakers to provide the Malaysian economic system with a productive social safety net to offset the negative impact caused by energy subsidy reform. Elservier Ltd. 2019-03 Article PeerReviewed text en http://ir.unimas.my/id/eprint/23248/1/Dzul%20Hadzwan%20Husaini.pdf Dzul Hadzwan, Husaini and Puah, Chin Hong and Lean, Hooi Hooi (2019) Energy subsidy and oil price fluctuation, and price behavior in Malaysia : A time series analysis. Energy, 171 (2019). pp. 1000-1008. ISSN 0360-5442 https://www.sciencedirect.com/science/article/abs/pii/S0360544219300805 DOI:org/10.1016/j.energy.2019.01.078 |
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HB Economic Theory HJ Public Finance Dzul Hadzwan, Husaini Puah, Chin Hong Lean, Hooi Hooi Energy subsidy and oil price fluctuation, and price behavior in Malaysia : A time series analysis |
description |
Balancing between favorable energy subsidy and the financial burden of government is crucial for policymakers.
This article intends to advance this thinking by informing policymakers about how price
reacts to changes in the international oil price and energy subsidy program. Hence, it is essential to
investigate the empirical evidence concerning the relationship between the international oil price and
energy subsidy, and price behavior. This study used time series data covering the period 1981e2015 to explore the price behavior on energy subsidy rationalization and oil price fluctuation in Malaysia. To prepare concrete empirical evidence, we employed the autoregressive distribution lag (ARDL) approach to capture the long-run dynamic behavior. Our findings indicated that both factors, oil price and energy subsidy, are significant in influencing the pattern of price behavior. The PPI (Producer Price Index) was more sensitive to changes in the oil price than the CPI (Consumer Price Index). The PPI was found to be affected more while the CPI was less affected. We call on policymakers to provide the Malaysian economic system with a productive social safety net to offset the negative impact caused by energy subsidy reform. |
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Article |
author |
Dzul Hadzwan, Husaini Puah, Chin Hong Lean, Hooi Hooi |
author_facet |
Dzul Hadzwan, Husaini Puah, Chin Hong Lean, Hooi Hooi |
author_sort |
Dzul Hadzwan, Husaini |
title |
Energy subsidy and oil price fluctuation, and price behavior in Malaysia : A time series analysis |
title_short |
Energy subsidy and oil price fluctuation, and price behavior in Malaysia : A time series analysis |
title_full |
Energy subsidy and oil price fluctuation, and price behavior in Malaysia : A time series analysis |
title_fullStr |
Energy subsidy and oil price fluctuation, and price behavior in Malaysia : A time series analysis |
title_full_unstemmed |
Energy subsidy and oil price fluctuation, and price behavior in Malaysia : A time series analysis |
title_sort |
energy subsidy and oil price fluctuation, and price behavior in malaysia : a time series analysis |
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Elservier Ltd. |
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2019 |
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http://ir.unimas.my/id/eprint/23248/1/Dzul%20Hadzwan%20Husaini.pdf http://ir.unimas.my/id/eprint/23248/ https://www.sciencedirect.com/science/article/abs/pii/S0360544219300805 |
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