A general equilibrium analysis of the inflationary impact ofenergy subsidies reform in Iran

IDEC DP2 Series Volume 2 Issue 8 Page 1-34 published_at 2012-02
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Title ( eng )
A general equilibrium analysis of the inflationary impact ofenergy subsidies reform in Iran
Creator
Hosseini Hossein Mirshojaeian
Source Title
IDEC DP2 Series
Volume 2
Issue 8
Start Page 1
End Page 34
Abstract
Iran has suffered ever-increasing domestic energy consumption mostly due to its price controlling policy. If the trend continues, it will become a pure importer in the following decades. To avoid that unlucky fate, Iran started the energy subsidies reform on December 2010. It increased domestic energy and agricultural prices up to 20 times, making it the first major oilexporting country to reduce substantially implicit energy subsidies. The paper studies the inflationary impact of the energy subsidies reform on different non-energy sectors and urban and rural households in Iran. For this purpose, the input-output price model of Iran is made and energy cross-price elasticities of non-energy sectors are derived. The results evidence the tremendous effects of the complete reform on the production and consumption prices.
Keywords
Energy subsidies reform
production and consumption prices
Iran
Input-output price model
Decomposition
NDC
Economics [ 330 ]
Language
eng
Resource Type departmental bulletin paper
Publisher
広島大学大学院国際協力研究科
Date of Issued 2012-02
Publish Type Version of Record
Access Rights open access