Document Type : Research Paper

Authors

• Mohamad Sayadi ¹
• Habib Soheyli Ahmadi ²
• Razieh Sadat Musavi Khaledi ³

¹ Kharazmi University

² Faculty Member, Kharazmi University, Tehran, Iran

³ M.A Student in Energy Economics, Kharazmi University, Tehran,

Abstract

Iran faces several pressing issues, including escalating energy consumption, inadequate price signaling to address consumption patterns, increasing greenhouse gas emissions, and prevailing distributional challenges related to energy subsidies. Consequently, reforming energy carrier subsidies in Iran becomes an imperative task. However, numerous obstacles hinder the effective implementation of this policy, presenting substantial challenges. This study employs a comparative approach that incorporates expert opinions and utilizes the Fuzzy Analytical Hierarchy Process (FAHP) method with a holistic perspective to evaluate and rank the barriers to energy subsidy reform. The identified barriers are categorized into three groups based on specific criteria: 1) political and social barriers, 2) economic barriers, and 3) institutional and governance barriers. Subsequently, thirteen sub-criteria have been established, considering Iran's economic conditions. The research findings highlight the significance of economic barriers, accounting for 53% weight, followed by political and social barriers with 26%, and institutional and governance barriers with 21%. Notably, among the economic barriers, the high dependency of energy industries on the country's exports and the government's concerns about potential damage to foreign exchange revenues, particularly under sanctions, emerge as crucial factors. Regarding political and social barriers, the prevalent mindset of entitlement among citizens regarding energy subsidies proves noteworthy. Additionally, the lack of a cohesive and reliable database for implementing energy subsidy reform policies assumes utmost importance among institutional and governance barriers. Based on these results, it is imperative for the government to undertake measures encompassing formulation, implementation, and evaluation in all dimensions of energy subsidy reform.

Keywords

• Energy Subsidy
• Economic Barriers
• Institutional and Governance Barriers
• Political and Social barriers
• FAHP

Main Subjects

• • مطالعات اقتصادی مرتبط با حامل‌های انرژی (فسیلی، تجدیدپذیر و برق)