Document Type : Research Paper

Authors

1 Assistant Professor in Energy Economics, University of Isfahan

2 Associate professor of Economics, Isfahan University of Medical Sciences.

3 University of Isfahan

10.22054/jiee.2025.84347.2135

Abstract

Energy subsidies in Iran have always accounted for a significant portion of the gross national income over the years better distributing income, and establishing social justice. In the present study, first, to obtain a quantitative index of the distribution of gasoline subsidies, the Gini coefficient (between 0 and 1) and the concentration index (between -1 and +1) are extracted regarding the inequality of gasoline consumption distribution between household income deciles in the country using household income-expenditure data. In order to examine the effectiveness of gasoline price reform in 2019 compared to previous and subsequent years, the extraction of the above indices was repeated for the years 2018 to 2024. All the results obtained from the calculations of the Gini coefficient and the concentration index indicate the existence of severe inequality in gasoline consumption in favor of the wealthier households, in such a way that the Gini coefficient fluctuated between 0.66 and 0.68 and the concentration index for the weighted deciles of the provincial gross expenditure between +0.32 and +0.37, which indicates the severity and stability of the inequality of distribution in gasoline consumption and subsidy, despite the political developments during the period. Finally, the factors affecting the gasoline consumption of households in Iran were estimated in the form of four regression models. The model showed that factors such as the household's place of residence (urban or rural), gender, occupational group and educational group of the household head, number of private cars, etc. had an effect on household gasoline consumption.

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