Investigating changes in the scale of natural gas subsidies in the major sector of the Iranian economy and its factors analysis

Document Type : applicative

Authors

1 Department of Economics, Shahid Bahonar University of Kerman, Kerman, Iran

2 Professor of Economics in Shahid Bahonar University of Kerman, Kerman, Iran

Abstract

this reason, one of the most energy consuming carriers in Iran is natural gas. Increasing attention to environmental issues and efforts to reduce pollutant emissions cause an increase in consumption and therefore an increase in subsidies for this energy carrier since 2000. Therefore, careful management and planning in the field of energy supply and demand, especially the discussion of gas subsidies, which have witnessed many changes in recent years and reform of the existing structure, are necessary. In this regard, the present study aimed at analyzing the changes in the natural gas subsidy scale and its factor analysis in Iran, using four indices of LMDI-I analysis and natural gas subsidy changes in four years from 2009 to2015. The effect has been broken down by time chains. results show that in different sectors of Iranian economy the effect of competitive price of natural gas has the greatest effect and the effect of natural gas pricing mechanism has had the least effect on the changes of the natural gas subsidy scale. Indicates the impact of different sectors of the Iranian economy on regional and international prices and the small impact of the project. The purpose of subsidies in this area is generally to determine the effect of decomposing factors on the changes in the natural gas subsidy scale: Competitive Price Effect, Consumption Effect, Consumption Structure Effect and, finally, Pricing Mechanism Effect.

Keywords

References

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Journal of Industrial Economics researches
Volume 3, Issue 10
March 2020
Pages 55-73

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History

  • Receive Date: 19 May 2020
  • Revise Date: 14 August 2020
  • Accept Date: 15 August 2020

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