برآورد محدوده كشش پذيري تقاضاي بنزين در ايران

An investigation on the impact of Price Policy on the Consumption of Benzine in Iran

Acording to Iranian Third Development Plan, the Price of Benzine should increase at 10 percent every year. Using the econometrics models, this article tries to test whether the price policy would reduce the consumption ol Ben/in. Estimation of demand function and identifying the elastic area - by applying a simulation method-show that the prices less than 2900 R. are in the inelastic area of demand function; so, in order to have an effective price policy, the price of Benzine should increase from the current 850 R. to at least 2900 R., that is, more than 300 percent increase. Regarding social and political impact of such an incerease, the article suggests that it is better to use the nun-price policies in controling the high consumption of Benzine.