Evaluation of Consumers' Welfare Costs Due to Rise of Energy Carriers Prices (A Case Study of Iran)

Subject Areas : Applied Economics

قدرت‌اله  اماموردی ¹ (مسئول مکاتبات)
رضا  هفت‌لنگ ² (ندارد)
مهدی  فراهانی ³ (ندارد)

Received: 2011-04-21 Accepted : 2011-08-29 Published : 2011-03-21

Keywords: Energy Carriers, Welfare Measurement Indexes (E, CV), Demand Function AIDS,

Abstract :

In this research, in order to survey and assess the effects of increasing energy carriers on consumers' welfare costs in Iran, measurement indexes of welfare costs(EV,CV) and AIDS demand function has been used.Applied data including energy carriers' price (Gasoline, Kerosene, Gas Oil, Furnace Fuel Oil, and Liquefied Gas); consumption share and quantity are for the period from 1974 to 2008.Model results indicate that increasing in prices or realizing prices in according to government suggested price scenario results decreasing 16.5 % in utility level and  in order to compensating consumers' income and achieving their initial utility level, sum of RLS 510,000 should be paid annually.