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| 1 |
ID:
183089
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| Summary/Abstract |
Iran is a natural-based resource economy and energy consumption is inefficient. The government in different periods has attempted to implement policies for reforming inefficiency in the energy sector. The facts indicate that inefficiency in the Iranian energy sector is a serious issue and dismantling phenomenon is seen in the energy policies. Policy dismantling in the energy sector is a recent phenomenon that little attention has been put on implementing reform policies in this sector. Thus, focusing on the dismantling of reform energy policies in Iran helps to understand the reasons for the failure of these policies. In this paper, an adapted framework was used for analyzing policy dismantling in the plan of Iranian targeting subsidies for the energy sector. We found how interactions between political economy, policy design, institutional constraints, and external factors (e.g., sanctions) influence policy dismantling in energy reform policies under targeting subsidies plan. On the base of results, we suggested some policies for effective designing and implementing energy reform policies for developing economies such as Iran.
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| 2 |
ID:
114323
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| Publication |
2012.
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| Summary/Abstract |
Energy prices in Iran have traditionally been heavily subsidized by the Government, and as a result, energy consumption per capita in Iran is close to the European Union level. The welfare effects of efforts to raise energy prices closer to world levels are examined in this paper. Reform of energy prices is an important element of the "Economic Reform Plan" (2010-2014) for Iran. We first analyze the relationship between energy consumption, energy and non-energy prices by estimating the household expenditure function. The results show that a higher energy prices will decrease energy consumption by Iranian households. Second, we evaluate the impact of a rise of energy prices on the household welfare by measuring the compensating variation (CV) in five steps with a compensating payment. The results show that Iranian household welfare will increase with a 100% or 200% rise in energy prices, if the government pays 20%, 30% or 50% of the $20 billion income resulting from removing energy subsidies. While, in contrast, Iranian household welfare will decrease with a 400% and 500% rise in energy prices, if the government payment is 20% or 30% of $20 billion income.
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