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The Impact Of Energy Subsidy On Nitrogen Fertilizer Producers In The Gcc

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  • Mohammed AL MAHISH

Abstract

This paper analyzes the impact of energy subsidies on a select sample of nitrogen fertilizer producers in the Arabian Gulf Cooperation Council (GCC) region. Subsidy rates were on average well above 50% and subsidy size reaches billions of dollars. Results show that output supply, input demand, and profit are highly responsive to changes in urea prices. The results also show that international natural gas prices have an inelastic positive impact on the GCC firms’ profit. The study concluded that subsidy policy in the GCC region has achieved one of its major goals by increasing demand for labor.

Suggested Citation

  • Mohammed AL MAHISH, 2017. "The Impact Of Energy Subsidy On Nitrogen Fertilizer Producers In The Gcc," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 99-118.
    • Handle: RePEc:eaa:aeinde:v:17:y:2017:i:2_8
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    Cited by:

    1. Cristina Herghelegiu & Luca Rubini, 2020. "‘Where have all the distortions gone?’ Appellate Body Report, Ukraine – Ammonium Nitrate, WT/DS493/AB," RSCAS Working Papers 2020/99, European University Institute.

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    More about this item

    Keywords

    Energy; Demand and Supply; Input-Output Model;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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