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Gasoline price as social phenomenon

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  • Kossov, Vladimir
  • Kossova, Elena

Abstract

The gasoline price transform into the social phenomenon by its role in economy. For the state, it is a source of budget revenue through indirect taxes, which in majority of countries make up most of the price. The upper bound of a gasoline price is limited by risk of mass protests. For the citizens a gasoline price affects the cost of living. The lower bound of this price is limited to possibility of the authorities to subsidize it. Balances of interests of the authorities and citizens are estimated for the gasoline prices deviating from the normal. Normal gasoline prices are offered as standard, with respect to which of the actual prices can distinguish high and low. We propose an econometric model for the estimation of the normal price. The analysis of the results of estimation is presented for 97 countries and the data for 2000, 2004 and 2006. Showing the problems emerging in Russia

Suggested Citation

  • Kossov, Vladimir & Kossova, Elena, 2013. "Gasoline price as social phenomenon," MPRA Paper 48720, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:48720
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    References listed on IDEAS

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    1. Rajeev K. Goel & Michael A. Nelson, 1999. "The Political Economy of Motor-Fuel Taxation," The Energy Journal, , vol. 20(1), pages 43-59, January.
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    Cited by:

    1. Kossov, Vladimir & Kossova, Elena, 2013. "The normal price. The case of the retail price of diesel fuel," MPRA Paper 48667, University Library of Munich, Germany, revised 12 Oct 2013.

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    More about this item

    Keywords

    gasoline price; normal price; budget revenue; oil rent; benefits and loses; mass protests;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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