Impact of Fossil Fuels Subsidies Removal on Consumer Behaviors: A Study on Fuel Price Change in UAE

  • Mariam Ghafli

Student thesis: Master's Thesis

Abstract

The aim of this paper is to investigate the impact of the lifting of fuel subsidies and resultant fuel price increases on consumer purchasing and lifestyle behaviors. A structured online survey was used to collect data from consumers in the United Arab Emirates. A valid respondent rate of 312 was obtained plus real traffic count data from Abu Dhabi Island. Descriptive statistics and correlation analyses were used to analyze and test the proposed hypotheses. Results suggested that consumers' concerns regarding fuel price increases were reflected in certain changes in their lifestyles. It was also found that fuel price concerns had a positive effect on automobile technology change, individuals agreed to use more fuel-efficient car or even to buy a smaller or a hybrid car. While it was negatively related to mode of transportation changes this means, they disagreed to use a bike or Public transportation. The greatest effect of fuel price increases was related to lifestyle changes, and the weakest to fuel type changes. Increases in fuel prices could not only affect fuel usage, but also consumer behavior and the demand for more fuel-efficient cars.
Date of AwardJul 2018
Original languageAmerican English
SupervisorAbdulla Galadari (Supervisor)

Keywords

  • Fossil Fuels Subsidies
  • fuel price change
  • lifestyle changes
  • consumers concerns
  • United Arab Emirates.

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