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Basic Income by Default: Lessons from Iran’s Cash Subsidy Programme

Massoud Karshenas () and Hamid Tabatabai
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Massoud Karshenas: University of London
Hamid Tabatabai: Independent Researcher

Chapter Chapter 18 in The Palgrave International Handbook of Basic Income, 2023, pp 363-380 from Palgrave Macmillan

Abstract: Abstract This chapter considers Iran’s nationwide, universal cash transfer programme which was launched in December 2010 as compensation for massive cuts in price subsidies for energy and other basic products. We focus on the unusual way the programme emerged and its potential lessons. Of particular interest is the impact on incomes and expenditures, labour supply, inflation, income distribution and poverty in the immediate aftermath of the launch of the programme, as well as its implications for similar schemes such as financing a UBI by carbon taxes. Given an extremely adverse broader environment however, the scheme was allowed to fizzle out and was eventually replaced with a targeted cash transfer programme in 2022.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:pal:etbchp:978-3-031-41001-7_18

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DOI: 10.1007/978-3-031-41001-7_18

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