Gasoline Demand, Pricing Policy and Social Welfare in Iran

Majid Ahmadian, Mona Chitnis and Lester Hunt
Additional contact information
Majid Ahmadian: Faculty of Economics, University of Tehran

No 117, Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) from Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey

Abstract: This study estimates a gasoline demand function for 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.

Pages: 32 pages
Date: 2007-02
New Economics Papers: this item is included in nep-cwa
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published in OPEC Review, 31(2), 2007, pp. 105-124. (Revised Version with different title)

Downloads: (external link)
https://repec.som.surrey.ac.uk/seeds/SEEDS117.pdf (application/pdf)

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:sur:seedps:117

Access Statistics for this paper

More papers in Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) from Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey Contact information at EDIRC.
Bibliographic data for series maintained by Mona Chitnis ().