The Effects of Cash Transfers of Electrical Energy Subsidies on the Price Index Using the Computable General Equilibrium (CGE) Model

In this study, we survey the effects of cash payments of electrical energy subsidies on prices index based on a computable general equilibrium model for Iran using a social accounting matrix (SAM) in 2006. We applied three scenarios on cash payments and their financing through (a) surplus revenues o...

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Main Authors: Hossein Sadeghi, Majid Eslami Andargoly, Ali Ghanbari
Format: Article
Language:fas
Published: Tarbiat Modares University 2014-01-01
Series:پژوهشهای اقتصادی
Subjects:
Online Access:http://ecor.modares.ac.ir/article-18-6656-en.pdf
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author Hossein Sadeghi
Majid Eslami Andargoly
Ali Ghanbari
author_facet Hossein Sadeghi
Majid Eslami Andargoly
Ali Ghanbari
author_sort Hossein Sadeghi
collection DOAJ
description In this study, we survey the effects of cash payments of electrical energy subsidies on prices index based on a computable general equilibrium model for Iran using a social accounting matrix (SAM) in 2006. We applied three scenarios on cash payments and their financing through (a) surplus revenues of government, (b) sales tax on electricity and (c) income tax on household revenue, and combined these scenarios with the scenario of increase in prices. The results show that in cases (a) and (c); the general prices level and price indices have direct relationship with cash subsidies and electricity prices.  However, in case (b), financing through sales tax, due to changes in the composition of aggregate demand, results in decreasing general price level.
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spelling doaj.art-2bef2e15f8d44cfda21fac2f1247b4582023-06-15T20:41:12ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322014-01-01134209237The Effects of Cash Transfers of Electrical Energy Subsidies on the Price Index Using the Computable General Equilibrium (CGE) ModelHossein Sadeghi0Majid Eslami Andargoly1Ali Ghanbari2 Assistant Professor of Economics, Tarbiat Modares University, (E-mail: sadeghih@modares.ac.ir). M.A. Student of Energy Economics, Power and Water University of Technology, (E-mail: Mj_Eslami63@yahoo.com). Assistant Professor of Economics, Tarbiat Modares University, (E-mail: dr_alighanbari@yahoo.com). In this study, we survey the effects of cash payments of electrical energy subsidies on prices index based on a computable general equilibrium model for Iran using a social accounting matrix (SAM) in 2006. We applied three scenarios on cash payments and their financing through (a) surplus revenues of government, (b) sales tax on electricity and (c) income tax on household revenue, and combined these scenarios with the scenario of increase in prices. The results show that in cases (a) and (c); the general prices level and price indices have direct relationship with cash subsidies and electricity prices.  However, in case (b), financing through sales tax, due to changes in the composition of aggregate demand, results in decreasing general price level.http://ecor.modares.ac.ir/article-18-6656-en.pdfgamselectrical energy pricesubsidyprice indexcash paymentscomputable general equilibrium (cge) modelgams
spellingShingle Hossein Sadeghi
Majid Eslami Andargoly
Ali Ghanbari
The Effects of Cash Transfers of Electrical Energy Subsidies on the Price Index Using the Computable General Equilibrium (CGE) Model
پژوهشهای اقتصادی
gams
electrical energy price
subsidy
price index
cash payments
computable general equilibrium (cge) model
gams
title The Effects of Cash Transfers of Electrical Energy Subsidies on the Price Index Using the Computable General Equilibrium (CGE) Model
title_full The Effects of Cash Transfers of Electrical Energy Subsidies on the Price Index Using the Computable General Equilibrium (CGE) Model
title_fullStr The Effects of Cash Transfers of Electrical Energy Subsidies on the Price Index Using the Computable General Equilibrium (CGE) Model
title_full_unstemmed The Effects of Cash Transfers of Electrical Energy Subsidies on the Price Index Using the Computable General Equilibrium (CGE) Model
title_short The Effects of Cash Transfers of Electrical Energy Subsidies on the Price Index Using the Computable General Equilibrium (CGE) Model
title_sort effects of cash transfers of electrical energy subsidies on the price index using the computable general equilibrium cge model
topic gams
electrical energy price
subsidy
price index
cash payments
computable general equilibrium (cge) model
gams
url http://ecor.modares.ac.ir/article-18-6656-en.pdf
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