Volume 10, Issue 2 (Spring 2015)                   J. Mon. Ec. 2015, 10(2): 23-47 | Back to browse issues page

XML Print


Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

Mirshojaeian Hosseini H, Majed V, Kaneko S. The Effects of Energy Subsidy Reform on Fuel Demand in Iran. J. Mon. Ec.. 2015; 10 (2) :23-47
URL: http://jme.mbri.ac.ir/article-1-193-en.html
1- Faculty of Economics, University of Tehran
2- Graduate School for International Development and Cooperation, Hiroshima University
Abstract:   (3132 Views)

To prevent further increases in energy consumption, the government of Iran 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.

JEL Classifications: C32, Q38, Q43

Full-Text [PDF 577 kb]   (2895 Downloads)    
Type of Study: Original Research - Theoric | Subject: Macroeconomics
Received: 22 Oct 2016 | Accepted: 22 Oct 2016 | Published: 22 Oct 2016

Add your comments about this article : Your username or Email:
CAPTCHA

Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

© 2022 All Rights Reserved | Journal of Money And Economy

Designed & Developed by : Yektaweb