Iran - The Chronicles of the Subsidy Reform

29 Pages Posted: 19 Jul 2011

See all articles by Mohammad Reza Farzin

Mohammad Reza Farzin

Allameh Tabatabaei University

Dominique M. Guillaume

Catholic University of Leuven

Roman Zytek

Independent

Date Written: July 2011

Abstract

On December 18, 2010, Iran increased domestic energy and agricultural prices by up to 20 times, making it the first major oil-exporting country to reduce substantially implicit energy subsidies. This paper reviews the economic and technical issues involved in the planning and early implementation of the reform, including the transfers to households and the public relations campaign that were critical to the success of the reform. It also looks at the reform from a chronological standpoint, in particular in the final phases of the preparation. The paper concludes by an overview of the main challenges for the second phase of the reform.

Suggested Citation

Reza Farzin, Mohammad and Guillaume, Dominique M. and Zytek, Roman, Iran - The Chronicles of the Subsidy Reform (July 2011). IMF Working Paper No. 11/167, Available at SSRN: https://ssrn.com/abstract=1888910

Mohammad Reza Farzin (Contact Author)

Allameh Tabatabaei University

Dehkadeh-ye-Olympic
Tehran, Tehran 1911783643
Iran

Dominique M. Guillaume

Catholic University of Leuven ( email )

Oude Markt 13
Center for Economic Studies
B-3000 Leuven
Belgium
32 16 32 68 40 (Phone)
32 16 32 67 (Fax)

Roman Zytek

Independent

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
152
Abstract Views
1,083
rank
261,205
PlumX Metrics