Green Pricing in the Asia Pacific: An Idea Whose Time Has Come?

Abstract

Abstract

The price and income elasticities of natural gas demand: International evidence

“…At the aggregate level, natural gas use appears to be more price sensitive than the demand for road-sector gasoline, for which estimates of the long-run price elasticity of demand are in the order of -0.2 to -0.6 (Havranek et al, 2012;Burke and Nishitateno, 2013;Burke, 2014;Arzaghi and Squalli, 2015). This makes sense, as there have been more substitution possibilities for natural gas in contexts such as electricity generation than have existed for road energy use.…”

“…In doing so we built off the estimation strategies employed in the first author's prior research (e.g. Nishitateno, 2013, 2015;Burke 2014;Burke and Liao, 2015), but with application to natural gas. We note that not all of our results are statistically significant: column 5 of Table 3 and column 4 of Table 4 provide insignificant estimates of the price elasticity of natural gas demand, for example.…”

Overcoming barriers to solar and wind energy adoption in two Asian giants: India and Indonesia

“…Fossil fuels are a source of negative externalities in the form of greenhouse gases and local pollutants, causing major health and other economic costs (Khilnani and Tiwari, 2018). Ideally, external costs would be incorporated into prices to ensure that the economic system properly considers all costs (Burke, 2014;Parry et al, 2017). Externality pricing is, however, very limited in both India and Indonesia.…”

“…One strategy is to ensure that reforms are visibly coupled with reductions in existing taxes, or priority expenditure initiatives. Both India and Indonesia have mechanisms that can be used to target benefits to low-income households (Burke, 2014;Parry et al, 2017). There is growing potential for the use of environmental taxes in Indonesia following the introduction of Government Regulation 46/2017 on environmental economic instruments and Presidential Regulation 77/2018 requiring the establishment of a public service agency for environmental fund management.…”

Fuel Prices and Road Deaths in Australia

“…They found a fuel price elasticity of road deaths of -0.2, similar to our estimates using monthly data for Australia. Burke (2014) and Burke and Nishitateno (2015) used annual data for up to 144 countries and found that the long-run fuel price elasticity of road deaths is around -0.3 to -0.6.…”