Fossil Fuel Subsidies in the Sustainable Urban Transport Agenda: A Maqaṣid al-Shari‘ah Approach
Keywords:
maqasid al shariah, fossil fuel subsidy, sustainable urban transport, Islamic public policy, transport externalities
Abstract
Background: Urban transport systems in many Muslim-majority countries face persistent challenges from rapid motorization, underinvestment in public transport, and long-standing fossil fuel subsidies. Although politically popular, these subsidies distort price signals, encourage excessive private vehicle use, and contribute to congestion, air pollution, public health risks, and limited fiscal space for sustainable mobility investments.
Method: This qualitative conceptual study reviewed Islamic jurisprudence, Islamic ethics, fossil fuel subsidies, transport externalities, and sustainable urban transport. It applies maqasid al-shariah, maslahah, khilafah, and la darar wa la diror to evaluate fossil fuel subsidies and sustainable urban transport from an Islamic ethical policy perspective.
Results: Fossil fuel subsidies are found to generate ethical and socio-policy concerns when they encourage excessive private vehicle use, intensify negative transport externalities, and constrain public transport investment. From an Islamic ethical perspective, these effects may undermine life, wealth, public welfare, and environmental stewardship, whereas sustainable urban transport reflects harm prevention, public interest, moderation, and responsible stewardship better.
Research limitations: This conceptual-normative paper develops an Islamic ethical-policy framework. Future research should empirically validate it through city-level case studies, stakeholder interviews, and behavioral studies on sustainable mobility acceptance.
Originality/value: This study frames sustainable urban transport as an Islamic ethical policy imperative when mobility-related harm threatens the public welfare. Its originality lies in applying maqasid al-shariah, maslahah, khilafah, and la darar wa la diror to reassess fossil fuel subsidies and support sustainable mobility transitions, thus offering an ethical basis for subsidy reform, public transport investment, and policy acceptance.
References
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Basri, S., Adnan, Y., Widiastuty, L., Asrul Syamsul, M., & Indar, I. (2024). Islamic Environmental Ethics: A Cultural Framework for Sustainable Resource Management and Global Ecological Stewardship. Diversity: Disease Preventive of Research Integrity, 86–93. https://doi.org/10.24252/diversity.v5i2.52342
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Cascetta, E. (2014). Future Scenarios Of Urban Mobility And Their Sustainability. E3S Web of Conferences, 2, 03002. https://doi.org/10.1051/e3sconf/20140203002
Cervero, R., & Murakami, J. (2010). Effects of Built Environments on Vehicle Miles Traveled: Evidence from 370 US Urbanized Areas. Environment and Planning A: Economy and Space, 42(2), 400–418. https://doi.org/10.1068/a4236
Coady, D., Shang, B., Le, N.-P., & Parry, I. (2019). Global Fossil Fuel Subsidies Remain Large: An Update Based on Country-Level Estimates. IMF Working Papers, 2019(089), 1. https://doi.org/10.5089/9781484393178.001
Gardner, B., Lally, P., & Rebar, A. L. (2020). Does habit weaken the relationship between intention and behaviour? Revisiting the habit‐intention interaction hypothesis. Social and Personality Psychology Compass, 14(8), e12553. https://doi.org/10.1111/spc3.12553
Ghoddusi, H., Morovati, M., & Rafizadeh, N. (2022). Dynamics of fuel demand elasticity: Evidence from Iranian subsidy reforms. Energy Economics, 110, 106009. https://doi.org/10.1016/j.eneco.2022.106009
Graham-Rowe, E., Skippon, S., Gardner, B., & Abraham, C. (2011). Can we reduce car use and, if so, how? A review of available evidence. Transportation Research Part A: Policy and Practice, 45(5), 401–418. https://doi.org/10.1016/j.tra.2011.02.001
Greene, D. L., & Wegener, M. (1997). Sustainable transport. Journal of Transport Geography, 5(3), 177–190. https://doi.org/10.1016/S0966-6923(97)00013-6
Hardin, G. (1968). The Tragedy of the Commons: The population problem has no technical solution; it requires a fundamental extension in morality. Science, 162(3859), 1243–1248. https://doi.org/10.1126/science.162.3859.1243
IEA. (2025). Fossil fuel subsidies: Tracking the impact of government support. https://www.iea.org/topics/fossil-fuel-subsidies
ISDB, S. (2018). Transport, climate action, and sustainable development in Islamic Development Bank member countries. https://www.isdb.org/sites/default/files/media/documents/2022-02/SLOCAT%20Infographic%20Webuse.pdf
ITDP. (2021). [Official]. Lessons Learned from Jakarta’s Journey to Integrated and Resilient Transport Systems. https://itdp-indonesia.org/wp-content/uploads/2022/01/Jakarta-Transport-Integration-Case-Study_11.18.21.pdf
ITDP Indonesia. (2022). Ringkasan Eksekutif Kenaikan Harga BBM dan Dampaknya (p. 7). file:///D:/unair/sustainable%20transport%20jakarta/proposal/20220913%20Ringkasan%20Eksekutif%20Kenaikan%20Harga%20BBM%20dan%20Dampaknya.pdf
Kamali, M. H. (2019). Maqasid Al-Shariah Made Simple. International Institute of Islamic Thought. https://doi.org/10.2307/j.ctvkc67vz
Kasri, R., & Ahmed, H. (2015). Assessing Socio-Economic Development Based on MaqāṣId Al-Sharīʿah Principles: Normative Frameworks , Methods and Implementation in Indonesia. Islamic Economic Studies, 23(1), 73–100. https://doi.org/10.12816/0012264
Legal Maxims of Islamic Jurisprudence. (n.d.).
Lin, C.-Y. C., & Zeng, J. (Jean). (2013). The elasticity of demand for gasoline in China. Energy Policy, 59, 189–197. https://doi.org/10.1016/j.enpol.2013.03.020
Litman, T. (2024). Guide to Valuing Walking and Cycling Improvements and Encouragement Programs (Nos. 250-508–5150; p. 72).
Lowe, M., Adlakha, D., Sallis, J. F., Salvo, D., Cerin, E., Moudon, A. V., Higgs, C., Hinckson, E., Arundel, J., Boeing, G., Liu, S., Mansour, P., Gebel, K., Puig-Ribera, A., Mishra, P. B., Bozovic, T., Carson, J., Dygrýn, J., Florindo, A. A., … Giles-Corti, B. (2022). City planning policies to support health and sustainability: An international comparison of policy indicators for 25 cities. The Lancet Global Health, 10(6), e882–e894. https://doi.org/10.1016/S2214-109X(22)00069-9
Marsden, G., & Reardon, L. (2017). Questions of governance: Rethinking the study of transportation policy. Transportation Research Part A: Policy and Practice, 101, 238–251. https://doi.org/10.1016/j.tra.2017.05.008
McRae, R. (1994). Gasoline Demand in Developing Asian Countries*. The Energy Journal, 15(1), 143–155. https://doi.org/10.5547/ISSN0195-6574-EJ-Vol15-No1-9
Mikayilov, J. I., Mukhtarov, S., Dinçer, H., Yüksel, S., & Aydın, R. (2020). Elasticity Analysis of Fossil Energy Sources for Sustainable Economies: A Case of Gasoline Consumption in Turkey. Energies, 13(3), 731. https://doi.org/10.3390/en13030731
Newman, P. W. G., & Kenworthy, J. R. (1989). Gasoline Consumption and Cities: A Comparison of U.S. Cities with a Global Survey. Journal of the American Planning Association, 55(1), 24–37. https://doi.org/10.1080/01944368908975398
Pradonoputro, T. P. B., & Kozo, O. (2021). Understanding Commuter’s Motivation of Transportation Choice: A Case Study of Greater Jakarta. Jurnal Manajemen Transportasi & Logistik (JMTRANSLOG), 8(1), 91. https://doi.org/10.54324/j.mtl.v8i1.507
Prince, S. A., Lancione, S., Lang, J. J., Amankwah, N., De Groh, M., Garcia, A. J., Merucci, K., & Geneau, R. (2022). Are people who use active modes of transportation more physically active? An overview of reviews across the life course. Transport Reviews, 42(5), 645–671. https://doi.org/10.1080/01441647.2021.2004262
Pucher, J., & Buehler, R. (2010a). Walking and Cycling for Healthy Cities. Built Environment, 36(4), 391–414. https://doi.org/10.2148/benv.36.4.391
Pucher, J., & Buehler, R. (2010b). Walking and Cycling for Healthy Cities. Built Environment, 36(4), 391–414. https://doi.org/10.2148/benv.36.4.391
Pucher, J., & Dijkstra, L. (2003). Promoting Safe Walking and Cycling to Improve Public Health: Lessons From The Netherlands and Germany. American Journal of Public Health, 93(9), 1509–1516. https://doi.org/10.2105/AJPH.93.9.1509
Republic of Indonesia. (2021). Updated nationally determined contribution: Republic of Indonesia: Corrected version. United Nations Framework Convention on Climate Change (p. 46). https://unfccc.int/sites/default/files/NDC/2022-06/Updated%20NDC%20Indonesia%202021%20-%20corrected%20version.pdf
Rice, G. (1999). Islamic Ethics and the Implications for Business. Journal of Business Ethics, 18, 345–358.
Rice, G. (2006). Pro-environmental Behavior in Egypt: Is there a Role for Islamic Environmental Ethics? Journal of Business Ethics, 65(4), 373–390. https://doi.org/10.1007/s10551-006-0010-9
Rietveld, P. (2000). Non-motorised modes in transport systems: A multimodal chain perspective for The Netherlands. Transportation Research Part D: Transport and Environment, 5(1), 31–36. https://doi.org/10.1016/S1361-9209(99)00022-X
Rietveld, P., & Daniel, V. (2004). Determinants of bicycle use: Do municipal policies matter? Transportation Research Part A: Policy and Practice, 38(7), 531–550. https://doi.org/10.1016/j.tra.2004.05.003
Rietveld, P., & Stough, R. (Eds.). (2005). Barriers to sustainable transport: Institutions, regulation and sustainability. Spon Press.
Sa’ad, S. (2009). An empirical analysis of petroleum demand for Indonesia: An application of the cointegration approach. Energy Policy, 37(11), 4391–4396. https://doi.org/10.1016/j.enpol.2009.05.058
Sallis, J. F., Cerin, E., Conway, T. L., Adams, M. A., Frank, L. D., Pratt, M., Salvo, D., Schipperijn, J., Smith, G., Cain, K. L., Davey, R., Kerr, J., Lai, P.-C., Mitáš, J., Reis, R., Sarmiento, O. L., Schofield, G., Troelsen, J., Van Dyck, D., … Owen, N. (2016). Physical activity in relation to urban environments in 14 cities worldwide: A cross-sectional study. The Lancet, 387(10034), 2207–2217. https://doi.org/10.1016/S0140-6736(15)01284-2
Santos, G. (2017). Road transport and CO 2 emissions: What are the challenges? Transport Policy, 59, 71–74. https://doi.org/10.1016/j.tranpol.2017.06.007
Schröder, D., Kirn, L., Kinigadner, J., Loder, A., Blum, P., Xu, Y., & Lienkamp, M. (2023). Ending the myth of mobility at zero costs: An external cost analysis. Research in Transportation Economics, 97, 101246. https://doi.org/10.1016/j.retrec.2022.101246
Shaheen, S., & Chan, N. (2016). Mobility and the Sharing Economy: Potential to Facilitate the First- and Last-Mile Public Transit Connections. Built Environment, 42(4), 573–588. https://doi.org/10.2148/benv.42.4.573
Small, K. A. (with Verhoef, E. T.). (2007). The economics of urban transportation. Routledge. https://doi.org/10.4324/9781315157375
Small, K. A., Verhoef, E. T., & Lindsey, R. (2024). The economics of urban transportation. Routledge.
Steg, L., & Vlek, C. (2009). Encouraging pro-environmental behaviour: An integrative review and research agenda. Journal of Environmental Psychology, 29(3), 309–317. https://doi.org/10.1016/j.jenvp.2008.10.004
Sunitiyoso, Y., Belgiawan, P. F., Rizki, M., & Hasyimi, V. (2025). Understanding user acceptance of mobility-as-a-service in Jakarta Metropolitan Area (JMA): Influencing factors and behavioural insights. Transportation Research Interdisciplinary Perspectives, 32, 101523. https://doi.org/10.1016/j.trip.2025.101523
Sunitiyoso, Y., Nuraeni, S., Inayati, T., Hadiansyah, F., Nurdayat, I. F., & Pambudi, N. F. (2020). Road Pricing in Indonesia: How Will Public Respond? Transportation Research Procedia, 47, 123–130. https://doi.org/10.1016/j.trpro.2020.03.084
Sunitiyoso, Y., Rahayu, W. A., Nuraeni, S., Nurdayat, I. F., Pambudi, N. F., & Hadiansyah, F. (2022). Role of ride-hailing in multimodal commuting. Case Studies on Transport Policy, 10(2), 1283–1298. https://doi.org/10.1016/j.cstp.2022.04.013
Tumiran, M. A. (2024). Integrative Concept of the Low-Carbon Cities with the Maqasid Syariah: A Review Analysis.
UITP. (2023). Why Public Transport is Key to Achieve the SDGs (p. 47). https://www.uitp.org/news/why-public-transport-is-key-to-achieve-the-sdgs/
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Published
2026-06-20
How to Cite
Yuliane, W., Fianto, B. A., Rusydiana, A. S., Rusgianto, S., & Hermawan, R. (2026). Fossil Fuel Subsidies in the Sustainable Urban Transport Agenda: A Maqaṣid al-Shari‘ah Approach. Sharia Economic and Management Business Journal (SEMBJ), 7(2), 464-484. https://doi.org/10.62159/sembj.v7i2.2338
Section
Articles
Copyright (c) 2026 Wempie Yuliane, Bayu Arie Fianto, Aam Slamet Rusydiana, Sulistya Rusgianto, Rheza Hermawan
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Jurnal Ekonomi dan Bisnis Manajemen Syariah (SEMB-J), Yayasan Darussalam Bengkulu is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Based on a work at https://siducat.org/index.php/sembj/.
