INFLATIONARY IMPACTS OF ENERGY PRICE ADJUSTMENTS IN IRAN: AN INPUT-OUTPUT APPROACH

摘要

The current Iranian energy-pricing system has some deficiencies. Iranian officials are planning to reform it, but they are concerned about possible unintended consequences. This study calculated the inflationary effects of such a reform using energy input-output techniques. The results show that doubling the prices of petroleum products, natural gas, and electricity will cause a significant increase in the main price indices. Thus, increasing energy prices to international levels would lead the economy to experience high inflation rates-a situation which may be politically unacceptable for Iranian officials.