Fuel Conservation Effect of Energy Subsidy Reform in Iran

IDEC DP2 Series Volume 3 Issue 1 Page 1-24 published_at 2013-01
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Title ( eng )
Fuel Conservation Effect of Energy Subsidy Reform in Iran
Creator
Hosseini Hossein Mirshojaeian
Source Title
IDEC DP2 Series
Volume 3
Issue 1
Start Page 1
End Page 24
Abstract
To pTo prevent further increases in energy consumption, the Iranian government commenced energy subsidy reform in 2010. This paper investigates the fuel conservation effects of the reform in Iran using a homothetic translog cost function that provides estimates of the own- and cross-price elasticities of fuel demands. The percentage reduction in fuel demands is estimated using the likely effect of the reform on fuel prices. The results reveal that the reform may not be as successful as assumed. Under optimistic assumptions, the reform may reduce energy consumption marginally, and under pessimistic assumptions, it may increase energy consumption because of inelastic fuel demands and substantial substitution between fuels.
Keywords
Energy subsidy reform
Energy conservation
Iran
Translog cost function
JEL Classification: C32
JEL Classification: Q38
JEL Classification: Q43
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 2013-01
Publish Type Version of Record
Access Rights open access