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Impacts Analysis of Discriminatory Pricing Policies Implementation in the Framework of Iran’s Subsidies Targeting law

Salarkia, Hamed | 2019

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 53086 (46)
  4. University: Sharif University of Technology
  5. Department: Energy Engineering
  6. Advisor(s): Maleki, Abbas
  7. Abstract:
  8. 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 payments to compensate for their declining welfare that led to decreasing the share of the production sector and neglected the needed activities to increase energy productivity. The purpose of this research was to study the effects of price reforming of energy carriers on household welfare by applying the discriminatory pricing policy in the framework of a computable general equilibrium model and by using a social accounting matrix database. The discriminatory pricing policy is simulated by applying several consumption thresholds for each energy carrier and applying a tax on consumption with an incremental slope in the research model. The results from applying discriminatory pricing scenarios indicate a decrease in household welfare in all scenarios. The average decrease in rural household welfare index is indicated to be higher in urban households. The lowest decrease in household welfare index is also associated with a situation where the number of consumption thresholds has increased and the tax on consumption has escalated with a slower slope
  9. Keywords:
  10. Computable General Equilibrium ; Household Welfare ; Small Area Estimation ; Energy Carrier ; Energy Carriers Price Reforming ; Social Accounting Matrix ; Price Policies

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