Sharif Digital Repository

Increases in food prices after the energy prices reform in Iran 2010, have raised concerns about reductions in households’ wellbeing and food security. Particularly for the families in the lower income quintiles who spend large fraction of their earnings on food and sheltering. This research intends to evaluate the welfare consequences of the increases in commodity prices on Iranian urban households by making use of a two-stage Quadratic Almost Ideal Demand System (QUAIDS), censored data and Compensation criterion. The demand system is estimated based on cross-section data which are taken from households’ expenditures and income surveys for years 2010 and 2011. Our results show that the own... 

The subsidies targeting law was ratified on October 23, 2009. At mentioned law appointed that the government redistributes up to 50% of earned revenues from price reforming of energy carriers to households by cash and non-cash payments and 30% of earned revenues to the production sector. But reports studies indicate that from 2010 to 2016, the government allocated 93.4% of the revenues to households in cash and non-cash and only 0.7% to the production sector. It can, therefore, be concluded that the subsidies targeting law has not been properly implemented. Indeed, the government has not only failed to fully reform energy carriers prices, but also has increased the households’ share of...