alexa THE DETERMINANT OF LATENT INCOME ON WHO IS ELIGIBLE TO RECEIVE ENERGY SUBSIDY. A CASE IN MALAYSIA. | OMICS International
ISSN: 2162-6359

International Journal of Economics & Management Sciences
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Case Report

THE DETERMINANT OF LATENT INCOME ON WHO IS ELIGIBLE TO RECEIVE ENERGY SUBSIDY. A CASE IN MALAYSIA.

Kwang Jing Yii1, Amran Ahmed2, Caroline Geetha3, Vivin Vincent Chandran4

1PhD Student, School of Business and Economics, Universiti Malaysia Sabah, Malaysia. E-mail: [email protected]

2Professor, School of Science and Technology, Universiti Malaysia Sabah, Malaysia. E-mail: [email protected]

3Senior Lecturer, School of Business and Economics, Universiti Malaysia Sabah, Malaysia. E-mail: [email protected]

4Lecturer, School of Business and Economics, Universiti Malaysia Sabah, Malaysia. E-mail: [email protected]

Abstract

Up to date the Malaysian government has been providing subsidy for various products like energy sources, health, food, education and so on. Among the subsidy given by the government, the most significant amounts go to energy subsidy. Misallocation of resources may lead to leakages and cause national deficit and eventually lead the country to bankruptcy. Therefore, the aim of this study is to identify the eligible individual to receive subsidy based on each energy resources. The study used cross sectional data collected from 500 respondents using structured questionnaire to determine the energy consumption of each energy source by households in urban and rural areas. The latent income threshold value determined indicates the benchmark used to examine the eligibility of subsidy recipient for each energy resource. The findings show that leakages exist in the consumption of energy when subsidies are given and not given. The latent income for urban area to receive energy subsidy should be distributed to those who earn below RM3000 while for rural area should be below RM1500.

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