Impact of Rising Energy Prices on Consumer’s Welfare: A Case      Study of Pakistan

Aziz, Shamaila; Yaseen, Muhammad; Anwar, Sofia

doi:10.30541/v55i4i-iipp.605-618

Cited by 8 publications

(12 citation statements)

References 16 publications

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“…For this reason, consumers' expenditure on energy products (electricity, gas, kerosene oil and firewood) has gradually decreased, leading to a reduction in the welfare loss for both rural and urban consumers. These results are consistent with Aziz et al (2016), who conclude that CV is positive (and consumer welfare falls) due to a rise in energy prices, especially in inflationary conditions.…”

Section: Resultssupporting

confidence: 91%

“…Adagunodo (2013) employs an AIDS model to examine the effect of energy prices reform on consumer welfare in Nigeria. Aziz et al (2016) use the same approach (LA/AIDS) while investigating the impact of energy prices on consumer welfare in Pakistan.…”

Section: Aids Modelmentioning

confidence: 99%

“…Currently, it allocates more than Rs200 billion a year in the form of subsidies to the energy sector, much of which goes to the power sector. The total amount in subsidies extended by the government to the energy sector in the last five years was Rs1,250 billion(Kessides, 2013).5 Recently,Aziz et al (2016) have also probed the effect of higher energy prices on consumers' welfare in Pakistan.…”

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confidence: 99%

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Energy Pricing Policies and Consumers’ Welfare: Evidence from Pakistan

Abrar¹,

Muhsin²,

Bashir³

et al. 2019

LJE

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This study analyzes the impact of energy pricing policies on consumers’ welfare in rural and urban Pakistan. The study is based on pooled data from the Household Integrated Economic Survey for the period 1984/85 to 2011/12. We use the Almost Ideal Demand System to estimate parameters and price elasticities. The welfare analysis suggests that the rise in energy prices has been greater than the rise in the general consumer price index over this period. Therefore, consumers have incurred high expenditures in all years from 1984 to 2012, with a consistent welfare loss for all consumers with a decreasing trend. Additionally, the welfare loss to rural consumers is greater than that to urban consumers.

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Section: Resultssupporting

confidence: 91%

Section: Aids Modelmentioning

confidence: 99%

mentioning

confidence: 99%

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Energy Pricing Policies and Consumers’ Welfare: Evidence from Pakistan

Abrar¹,

Muhsin²,

Bashir³

et al. 2019

LJE

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“…The consumer price index had a positive long-run association so monetary policy affects inflation. Aziz et al (2016) identified the impact of higher energy prices on consumer welfare for Pakistan. The time-series data was used from 1987 t0 2012.…”

Section: Introductionmentioning

confidence: 99%

Investigation of Energy Inflation Dynamics in Pakistan: Revisiting the Role of Structural Determinants

Iqbal

Yasmin²,

Safdar

et al. 2021

RAMSS

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Enormous fluctuation has been observed in energy prices in recent years. This strong volatility in energy prices implies grave inferences for Pakistan’s economy as shown by its substantial dependence on imported fuels. In Pakistan, energy prices play a critical role in inflation determination also concluded in the study at hand. The index of energy inflation was constructed, and the role of various control variables such as board money, taxes, oil prices, energy import, and GDP has been elaborated. Current study endeavors to examine the determinants of energy inflation in Pakistan by using time-series data for 1991 to 2019. Unit root was tested by utilizing ADF, furthermore, the Bound test suggested ARDL cointegration for empirical analysis. Therefore, an increase in the demand for energy in economic activities in developing countries indicates an energy demand hence implies energy inflation. The government of Pakistan must focus on the role of these factors to control inflation and to enhance the welfare in the country.

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“…This study is different from previous studies on the research topic as it measures energy prices in domestic pump diesel prices and pump gasoline prices. While the previous studies have measured the energy prices on the basis of international crude oil prices per barrels and ignore the cost of government taxes, transportation cost, profits of the organization (Qasim et al, 2021;Iqbal et al, 2021;Aziz et al 2016;Saleem & Ahmad, 2015). The energy prices on the basis of international crude oil prices is not a good measure of domestic energy prices.…”

Section: Figure 2 Consumer Price Index(cpi)mentioning

confidence: 99%

Investigating the Role of Energy Prices in Enhancing Inflation in Pakistan: Fresh Insight from Asymmetric ARDL Model

Maqbool¹,

Bashir²,

Rehman³

et al. 2021

RAMSS

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The aim of this study is to examine the export performance and competitiveness of Pakistan's toy exports by using different indices of revealed comparative advantage. The data were looked at from the International Trade Centre (ITC) for Pakistan’s toys exports during 2004-2020. The results of this study show that Pakistan enjoyed a comparative advantage in exporting toys to the world market during 2004-2020, because the RCA index is greater than 1. The positive values of RSCA and LnRCA indicate that Pakistan had a CA in the concerned sector during 2004-2020. The study also observed that Pakistan had a competitive advantage by employing Vollrath index (RCA#). In addition, the revealed competitiveness index (RC) indicates that Pakistan experienced competitiveness in the toy export sector. The RMA index shows that Pakistan also enjoyed a comparative advantage in the imports of toys during 2004-2020. This means that Pakistan also imports these products from other economies of the world. The index of RTA describes that Pakistan had a net comparative advantage in this sector during analysis. TBI illustrates that Pakistan is the net-exporter in the toys and games sector in the global economy. Pakistan's toy manufacturers need to find new innovative and technologically advanced methods to stimulate domestic toy production and exports.

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Impact of Rising Energy Prices on Consumer’s Welfare: A Case Study of Pakistan

Cited by 8 publications

References 16 publications

Energy Pricing Policies and Consumers’ Welfare: Evidence from Pakistan

Energy Pricing Policies and Consumers’ Welfare: Evidence from Pakistan

Investigation of Energy Inflation Dynamics in Pakistan: Revisiting the Role of Structural Determinants

Investigating the Role of Energy Prices in Enhancing Inflation in Pakistan: Fresh Insight from Asymmetric ARDL Model

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