Gasoline demand, pricing policy and social welfare in the Islamic Republic of Iran

Majid Ahmadian, Mona Chitnis and Lester Hunt

OPEC Energy Review, 2007, vol. 31, issue 2, 105-124

Abstract: This study estimates the gasoline demand function for the Islamic Republic of Iran, using the structural time series model over the period 1968‐2002, and uses it to estimate the change in social welfare for 2003 and 2004, of a higher gasoline price policy. It is found that short‐ and long‐run demand price elasticities are inelastic, although the response is greater in the long run. Hence, social welfare is estimated to fall because of the higher gasoline price (ceteris paribus). However, allowing all variables in the model to change, social welfare is estimated to increase since the changes in the other variables more than compensate for the negative effects of the policy.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://doi.org/10.1111/j.1468-0076.2007.00179.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:opecrv:v:31:y:2007:i:2:p:105-124

Ordering information: This journal article can be ordered from
http://ordering.onli ... /%28ISSN%291753-0237

Access Statistics for this article

OPEC Energy Review is currently edited by Angela U. Agoawike

More articles in OPEC Energy Review from Organization of the Petroleum Exporting Countries
Bibliographic data for series maintained by Wiley Content Delivery ().