THE EFFECT OF ELECTRICITY PRICE INCREASE ON NET WELFARE OF DIFFERENT INCOME GROUPS IN IRAN: 1967-2004

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GHADERI J.; ESTEDLAL S.

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Journal: JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH) Year:2009 | Volume:9 | Issue:1 Page(s): 101-120

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Title

THE EFFECT OF ELECTRICITY PRICE INCREASE ON NET WELFARE OF DIFFERENT INCOME GROUPS IN IRAN: 1967-2004

Author(s)

GHADERI J. | ESTEDLAL S. | Issue Writer Certificate

Keywords

DEAD WEIGHT LOSSQ3

COMPENSATED VARIATIONQ2

DIFFERENT INCOME GROUPSQ3

SUBSIDYQ3

ELECTRICITY PRICE INCREASEQ2

IRANQ2

Abstract

The purpose of this paper is to investigate the effect of increasing electricity price on COMPENSATED VARIATION (CV) and deadweight loss (DWL) of DIFFERENT INCOME GROUPS in IRAN over the 1967-2004 period. An autoregressive distributed lag (ARDL) model is employed and five electricity demand functions are estimated for DIFFERENT INCOME GROUPS and based the estimates, CV and DWL are calculated. The effects of ELECTRICITY PRICE INCREASE on CV and DWL are examined and the following results are obtained: - Comparing CV in DIFFERENT INCOME GROUPS shows that CV increases from the poor to the rich.- Comparing DWL in DIFFERENT INCOME GROUPS shows that DWL increases from the poor to the rich.- By increasing electricity price and using direct SUBSIDY, the welfare of low and middle income groups increase while the welfare of high income groups decrease.

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APA: Copy

GHADERI, J., & ESTEDLAL, S.. (2009). THE EFFECT OF ELECTRICITY PRICE INCREASE ON NET WELFARE OF DIFFERENT INCOME GROUPS IN IRAN: 1967-2004. JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), 9(1), 101-120. SID. https://sid.ir/paper/86511/en

Vancouver: Copy

GHADERI J., ESTEDLAL S.. THE EFFECT OF ELECTRICITY PRICE INCREASE ON NET WELFARE OF DIFFERENT INCOME GROUPS IN IRAN: 1967-2004. JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH)[Internet]. 2009;9(1):101-120. Available from: https://sid.ir/paper/86511/en

IEEE: Copy

J. GHADERI, and S. ESTEDLAL, “THE EFFECT OF ELECTRICITY PRICE INCREASE ON NET WELFARE OF DIFFERENT INCOME GROUPS IN IRAN: 1967-2004,” JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), vol. 9, no. 1, pp. 101–120, 2009, [Online]. Available: https://sid.ir/paper/86511/en

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