Local corruption and support for fuel subsidy reform: Evidence from Indonesia
There is an urgent need to phase out global petroleum subsidies, due to the severe strain they impose on government expenditures and on the environment. However, reform efforts are often stymied by popular resistance to subsidy reform. This article examines the role played by local governments in sh...
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2017
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| Acceso en línea: | https://hdl.handle.net/10568/147967 |
| _version_ | 1855520421807390720 |
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| author | Kyle, Jordan |
| author_browse | Kyle, Jordan |
| author_facet | Kyle, Jordan |
| author_sort | Kyle, Jordan |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | There is an urgent need to phase out global petroleum subsidies, due to the severe strain they impose on government expenditures and on the environment. However, reform efforts are often stymied by popular resistance to subsidy reform. This article examines the role played by local governments in shaping resistance to reforming fiscally and environmentally disastrous fuel subsidies. Shifting from universalaccess social programs, such as fuel subsidies, to targeted programs requires vesting authority with local politicians and bureaucrats, whom the state relies on to identify poor households and to deliver benefits. Where local governments are corrupt, citizens find promises to replace fuel subsidies with targeted spending less credible, and resistance to reform is higher. Using household survey data from Indonesia, this paper finds that corruption in the implementation of targeted transfer programs increases resistance to fuel subsidy reform among the poor citizens who consume the least fuel and who stand to benefit the most from targeted programs. Matching methods are employed to reduce endogeneity concerns. The findings suggest that improving capacity within subnational governments to deliver social programs is important in developing public support for reform. |
| format | Artículo preliminar |
| id | CGSpace147967 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1479672025-11-06T05:44:39Z Local corruption and support for fuel subsidy reform: Evidence from Indonesia Kyle, Jordan service industry support measures surveys fuels households environmental protection reforms environment delinquent behavior subsidies petroleum public expenditure corruption There is an urgent need to phase out global petroleum subsidies, due to the severe strain they impose on government expenditures and on the environment. However, reform efforts are often stymied by popular resistance to subsidy reform. This article examines the role played by local governments in shaping resistance to reforming fiscally and environmentally disastrous fuel subsidies. Shifting from universalaccess social programs, such as fuel subsidies, to targeted programs requires vesting authority with local politicians and bureaucrats, whom the state relies on to identify poor households and to deliver benefits. Where local governments are corrupt, citizens find promises to replace fuel subsidies with targeted spending less credible, and resistance to reform is higher. Using household survey data from Indonesia, this paper finds that corruption in the implementation of targeted transfer programs increases resistance to fuel subsidy reform among the poor citizens who consume the least fuel and who stand to benefit the most from targeted programs. Matching methods are employed to reduce endogeneity concerns. The findings suggest that improving capacity within subnational governments to deliver social programs is important in developing public support for reform. 2017 2024-06-21T09:23:35Z 2024-06-21T09:23:35Z Working Paper https://hdl.handle.net/10568/147967 en https://hdl.handle.net/10568/147884 https://hdl.handle.net/10568/146275 https://hdl.handle.net/10568/154753 https://hdl.handle.net/10568/151061 Open Access application/pdf International Food Policy Research Institute Kyle, Jordan. 2017. Local corruption and support for fuel subsidy reform: Evidence from Indonesia. IFPRI Discussion Paper 1620. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147967 |
| spellingShingle | service industry support measures surveys fuels households environmental protection reforms environment delinquent behavior subsidies petroleum public expenditure corruption Kyle, Jordan Local corruption and support for fuel subsidy reform: Evidence from Indonesia |
| title | Local corruption and support for fuel subsidy reform: Evidence from Indonesia |
| title_full | Local corruption and support for fuel subsidy reform: Evidence from Indonesia |
| title_fullStr | Local corruption and support for fuel subsidy reform: Evidence from Indonesia |
| title_full_unstemmed | Local corruption and support for fuel subsidy reform: Evidence from Indonesia |
| title_short | Local corruption and support for fuel subsidy reform: Evidence from Indonesia |
| title_sort | local corruption and support for fuel subsidy reform evidence from indonesia |
| topic | service industry support measures surveys fuels households environmental protection reforms environment delinquent behavior subsidies petroleum public expenditure corruption |
| url | https://hdl.handle.net/10568/147967 |
| work_keys_str_mv | AT kylejordan localcorruptionandsupportforfuelsubsidyreformevidencefromindonesia |