This paper attempts to analyze the macroeconomic effects of ENERGY PRICE LIBERALIZATION and redistribution of its proceeds to households. ENERGY PRICE control and ENERGY subsidies are of the most popular supportive policies in the economy of Iran. Nonetheless, increasing the ENERGY PRICE of households and firms has been exercised in recent years to counter the government budget deficit. In 2008, the government proposed a reform: ENERGY PRICE LIBERALIZATION and redistribution of its proceeds to the household. In this paper, we analyze the macroeconomic effects of this policy according to different scenarios. In view of monetary aggregate control policy, our results show that in addition to a decline in ENERGY intensities of households and firms, the average household’ s welfare increases. Most of this increase happens in the short-run as households’ real incomes rise more in the short run. Moreover, we find that this reform results in a decline in labor supply due to the subsidy distribution, and hence a decline in both output and capital accumulation in the short run and the long run. In the scenario where only the household’ s ENERGY PRICE rises, results are qualitatively similar with a smaller quantitative effect. Finally, it is important to note that a complete analysis of this reform should include 1) the technological progress that can be associated with a reform, 2) implementing a monetary policy that is more consistent with Iran’ s institutional arrangement and 3) the political economy aspects of the reform, which are all out of the scope of this paper.

Agricultural sector is one of the most productive sectors of the Iranian economy which has been exposed to ENERGY PRICE increases interact in the recent years. ENERGY is one of the most important factors affecting the performance of productive sectors such as agriculture which due to its key role in the production process, its probable reducing or increasing in demand and consumption is involving considerable importance. Therefore, this study seeks to answer that according to the subordinated relationship between agricultural performance and ENERGY and other factors demand, how is the impact of LIBERALIZATION of the ENERGY PRICEs on the demand for the Iranian agricultural major production factors. Hence, in this study, using the panel data for the period of 1991-2011 and the system of seemingly unrelated equations (ISUR) the conditional demand function of the production factors of the agricultural sectors was estimated for the provinces. Results showed that ENERGY demand in the agricultural sector will reduce by the LIBERALIZATION of the ENERGY PRICE. Also, the results showed that by increasing the ENERGY carrier’s PRICE, the demand for the production factors land and labor in the agricultural sector will increase. It is because of the adoption and continuation of alternative funding and allocation of credits for the ENERGY consumption reforms to keep pace with the LIBERALIZATION of the ENERGY PRICE. Finally, results showed that the outcome of these polices has caused that the LIBERALIZATION of the ENERGY PRICEs can be seen as opportunity for the agricultural sector.

In this paper, we study the effects of ENERGY PRICE LIBERALIZATION policies on the development of wind power usage in Iran. The economics of ENERGY production from wind and gas power plants are compared. The Levelized Cost of ENERGY (LCOE) is used as an index to compare the plants’ cost of electricity production. LCOE is a well-known index to measure the economics of a plant once all the factors such as cost of air pollutants and exchange rates are to be considered. We show that by removing subsidies from conventional fuels in Iran, wind power plants are completely cost effective. Due to the opportunity cost of gasoline, power generation from wind can provide the ability to export gasoline. The benefit increases by designing and constructing of infrastructures required to develop the technology inside the country. It is worth mentioning that due to changes in exchange rates, policies should be directed towards developing the wind turbine technology inside the country which in turn provides job opportunities.

Subsidies have been paid on agriculture inputs with the aim of supporting producers in order to develop agricultural products as the vital needs of consumers and as a result increase social well-being. But the low cost of ENERGY as an important production input in agriculture sector which draws certain government supports, has undesired effects on different parts of society including agriculture. Among the undesired consequences of this policy are low ENERGY efficiency, environment destruction threat and therefore an influence on sustainable agriculture factors, high internal consumption compared with international standards, and the high cost of ENERGY subsidies imposed on public budget. To investigate the effects of ENERGY PRICE LIBERALIZATION policies on the environmental factors of sustainable agriculture, this study uses partial equilibrium (PE) with mathematical programming approach and analyzes the effects of different ENERGY cost scenarios on these indicators. The results of running the model in GAMS 22.9 software showed that decreasing ENERGY subsides had positive influence on the improvement of environmental indicators, consumed water, and N and K fertilizers per hectare.

High electricity consumption in the industrial sector of Iran is an important issue. PRICE LIBERALIZATION and elimination of electricity subsidy is one way of reducing electricity consumption. In this study we estimated the demand function of electricity in the industrial sector for 1975 to 2007, using the ARDL method. The results indicated short and long-run PRICE elasticities of -0.05 and -0.28 and short and long-run income elasticities of 0.27 and 1.52. We use these elasticities to consider two potential scenarios for removal of subsidies. The first scenario would adopt a three year time horizon of 2010 to 2012, while the second one allows for five years (2010-2014). In each scenario we considered both a monotonous increase of nominal PRICEs and a monotonous increase of real PRICEs. The results indicate that in the first scenario the PRICE will be 354.9, 557.4 and 833.2 rials per kilowatt / h, respectively in 2010, 2011 and 2012, while under the second scenario PRICE will be 310.55, 415.24, 519.93, 624.62 and 729.31 rials per kilowatt / h respectively in 2010, 2011, 2012, 2013 and 2014.

In addition to investigate the log-run relationship between oil consumption and GDP growth in a supply side model, this paper examines the effects of oil products PRICE LIBERALIZATION on its consumption and GDP growth in a demand side model in Iran. We use annual time series data covering from 1350 to 1385 in the ARDL Bounds test approach. The results of the supply side model show that there is a unidirectional running from oil products consumption to economic growth with a negative coefficient. This result indicates that low oil products PRICEs led to the use of inefficient and out of date technologies, exhausted and ENERGY intensity. The increased consumption of oil products due to non-optimal allocation of this input in the inefficient economic sectors will lead to the waste of it and reduce economic growth.Moreover, the results of the demand side model suggest the positive and negative impact of oil products PRICE on GDP growth and oil products consumption, respectively. The inverse relationship between oil products PRICEs with its consumption and the positive impact of oil products PRICE on economic growth show that the government's decision to oil products PRICEs LIBERALIZATION is a step towards an efficient allocation of oil products, and an increase in the economic growth in the long-run.

A medium scale structural macro econometric model is constructed to investigate the effects of ENERGY PRICE LIBERALIZATION on the main macroeconomic variables. The analysis is conducted under 3 different scenarios of increasing the PRICE of ENERGY sources to the level prevailed in the countries of the Persian Gulf region. These 3 scenarios are a sudden increase, a gradual increase within a 5 years time span and a gradual increase in ENERGY PRICEs together with some compensation of household and the industry.The simulation results show that under the first scenario, inflation rate goes up to 94%, GDP growth rate reduces to 1.2% and unemployment rate rises to 11.5%. Under the second scenario, in the first year of rising ENERGY PRICEs, inflation rate increase to 27.7% and GDP growth rates falls to 2%. If the third scenario is chosen, the inflation rate will increase to 95.2% in the first year, while GDP growth rate and unemployment rate will be 1.2% and 11.5% respectively.

Economic reform aimed at improving the social welfare is one of the important goals of policy makers. The efficiency of insurance companies and the impact of PRICE LIBERALIZATION during 1388 have been analyzed in this study. For this purpose, in the first stage, the efficiency of insurance companies is calculated during 1382-90 using a hybrid approach of Gram-Schmidt algorithm and data envelopment analysis. In this stage, firstly, the correlation between the model variables is reduced by Gram-Schmidt algorithm and then the efficiency of the companies is measured by MSBM. In the second stage, the impact of PRICE LIBERALIZATION on the efficiency of insurance companies is investigated by GEE. The results indicated that the PRICE LIBERALIZATION has negatively affected the efficiency of insurance companies. Finally, some suggestions have been proposed to enhance the current status.

The purpose of this paper is to estimate oil products demand by the state-space model, taking into account the implications for PRICE LIBERALIZATION using the Kalman filter technique in the framework of a time-varying pattern. For this purpose, we use the data of the ENERGY Balance Sheet and the National Iranian Oil Refining and Distribution Company during the period of 1994-2017. Our model results indicate that the PRICE elasticity of oil products varies during the studied period. Using three different scenarios, we consistently find that a 10% annual increase in oil product PRICEs during the sixth development plan, leads to a decrease in the consumption of kerosene and fuel oil, while gasoline and gas oil consumption increases. We thus observe that while kerosene and fuel oil demand responds as expected to rising PRICEs, the PRICE sensitivity of demand for gasoline and gas oil declines. We observe that while the absolute value of the PRICE elasticity of gasoline has fallen unexpectedly, the PRICE elasticity of kerosene, fuel oil and gas oil have increased. Therefore, in order to encourage gasoline consumers to reduce their demand, the speed of PRICE LIBERALIZATION at the end of the sixth development plan has to be more than at the beginning of the program. However, the rate of PRICE increase for kerosene, gas oil and fuel oil products has to decrease at the end of the program.

Being clear is one of the validity conditions of the sale contract. However, in some contracts particularly contracts related to the ENERGY sector the PRICE is not specify in detailed at time of the conclusion of contract. Such contracts is titled the sale by open PRICE. In such contracts, the parties cannot or will not specify the PRICE exactly at time of conclusion but they are assigned the determination of PRICE to indicators more or less variable in future and even in some cases lay dormant. Because of growing volume of these contracts studying their legal status is necessary. The question of this paper is that whether sale by open PRICE is valid because of the pretext of nullity of the contract and defects in the conditions of the contract? This paper is to studying the principles of issue in Jurisprudence and Iranian law is pave the way for the acceptance and development of such contracts.