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Information Journal Paper

Title

Allocation of Exchangeable Quotas to Individuals; Proposed Solution to Reform the Energy Subsidy System

Pages

  204-243

Abstract

 For years, the price of energy carriers has been kept low by the government due to the existence of oil resources to increase the welfare and satisfaction of individuals in society. However, evidence shows that Energy subsidies have not only failed to bring prosperity to the Iranian people but have also had many negative consequences for the country’ s economy. The suppression of energy prices and the collapse of relative prices have not only led to the high energy consumption of households, but also to the formation of industries that are lagging behind the world’ s latest technology and with minimal productivity, their only advantage is cheap energy. Unequal distribution of subsidies and thus increasing the welfare gap, fuel smuggling, environmental pollution, traffic, negative impact on the government budget, etc. are the negative consequences of pervasive energy price subsidies. All this shows that it is not possible to continue the status quo and it is necessary to reform the system of Energy subsidies. The proposal for the current plan to reform the subsidy system is to provide an exchangeable energy quota to all individuals in the form of a virtual currency based on the costs of a fair energy basket The advantage of this plan is the formation of real energy prices and the existence of a decentralized redistribution system of revenues from rising energy prices in society.

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    • Cite

    APA: Copy

    GHASEMI, MOHAMMAD JAVAD, Naji Esfahani, Seyed Mehdi, & Tavakoli Kashi, Ali Reza. (2021). Allocation of Exchangeable Quotas to Individuals; Proposed Solution to Reform the Energy Subsidy System. STRATEGIC STUDIES OF PUBLIC POLICY (STRATEGIC STUDIES OF GLOBALIZATION JOURNAL), 10(37 ), 204-243. SID. https://sid.ir/paper/391562/en

    Vancouver: Copy

    GHASEMI MOHAMMAD JAVAD, Naji Esfahani Seyed Mehdi, Tavakoli Kashi Ali Reza. Allocation of Exchangeable Quotas to Individuals; Proposed Solution to Reform the Energy Subsidy System. STRATEGIC STUDIES OF PUBLIC POLICY (STRATEGIC STUDIES OF GLOBALIZATION JOURNAL)[Internet]. 2021;10(37 ):204-243. Available from: https://sid.ir/paper/391562/en

    IEEE: Copy

    MOHAMMAD JAVAD GHASEMI, Seyed Mehdi Naji Esfahani, and Ali Reza Tavakoli Kashi, “Allocation of Exchangeable Quotas to Individuals; Proposed Solution to Reform the Energy Subsidy System,” STRATEGIC STUDIES OF PUBLIC POLICY (STRATEGIC STUDIES OF GLOBALIZATION JOURNAL), vol. 10, no. 37 , pp. 204–243, 2021, [Online]. Available: https://sid.ir/paper/391562/en

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