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Impact Analysis of Removing Petroleum Product Subsidies in Thailand

In: Institutional Policy and Economic Impacts of Energy Subsidies Removal in East Asia

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  • Thitisak Boonpramote

Abstract

The objective of this study is to collect the related information on the mechanism of the major petroleum product subsidies and examine the impact of the subsidy removals in Thailand. The price-gap approach is used to estimate the past magnitude of the petroleum product subsidies. The impacts of the subsidy removals at the macroeconomic level are estimated using computable general equilibrium models. Since the Thai government has already started to reform the fuel price subsidies, a review of current policy and the implications for Thailand are also discussed.

Suggested Citation

  • 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).
    • Handle: RePEc:era:chaptr:2015-rpr-23-3
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    1. John M. Piotrowski & David Coady & Justin Tyson & Rolando Ossowski & Robert Gillingham & Shamsuddin Tareq, 2010. "Petroleum Product Subsidies; Costly, Inequitable, and On the Rise," IMF Staff Position Notes 2010/05, International Monetary Fund.
    2. 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).
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