Effects of Targeting Subsidies on Agricultural Sector in Iran
Subject Areas : Labor and Demographic Economics
ahmad
tashkini
1
(دانشیار اقتصاد موسسه مطالعات و پژوهشهای بازرگانی)
Abstract :
This study tries to examine the impact of liberalization on the price of energy carriers including gasoline, kerosene, gasoline, fuel oil, LPG, electricity and natural gas on agricultural sector in Iran by using Social Accounting Matrix. Despite of 13-20 percent of agriculture contribution to GDP and employment, only 3.8 percent of total energy consumption is allocated to it during 2001-2009. The results of Social Accounting Matrix represent 57 and 41 percent growth in producer price index of agricultural products according to two scenarios (the average growth percentage of 2100 and 1570 in energy prices). Gasoline, by 40 percent of total direct and indirect effects, has the highest share in the increase of price index of agricultural production. To compensate the energy price liberalization on the agricultural sector, prolonging the rise of energy prices in the agricultural sector, preferential prices for electricity use in agriculture and energy efficiency in agriculture can be proposed.
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