چكيده فارسي :
As do other oil-exporting countries, Iran allocates subsidies to her domestic
use of gasoline. The subsidy amount, however, is comparatively high. The
resulting low price spurs indiscriminate fuel consumption and reduces Iran’s
income from crude oil. The significant impact motivates this paper’s analysis
of the effects eliminated subsidy may have on the demand for gasoline. Two
scenarios were simulated. A relevant demand function was estimated.
Conclusions for sudden removal of gasoline subsidies predict a downward
shift in the demand for gasoline, although it will always remain upward
sloping. When the subsidies were gradually removed between1994 and 2004,
gasoline consumption dropped, and then steadied after 2001. Beginning
2004, demand for gasoline rose towards its future real value.
