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ID 33897
file
creator
Hosseini, Hossein Mirshojaeian
subject
Energy subsidy reform
Energy conservation
Iran
Translog cost function
JEL Classification: C32
JEL Classification: Q38
JEL Classification: Q43
NDC
Economics
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.
journal title
IDEC DP2 Series
volume
Volume 3
issue
Issue 1
start page
1
end page
24
date of issued
2013-01
publisher
広島大学大学院国際協力研究科
SelfDOI
language
eng
nii type
Departmental Bulletin Paper
HU type
Departmental Bulletin Papers
DCMI type
text
format
application/pdf
text version
publisher
department
Graduate School for International Development and Cooperation
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