Farideh Mohammadkhani Orouji; Zahra Saeid
Abstract
Energy carriers as one of the important inputs of production and also consumer goods of households, play a very important role in determining production costs and household expenditures. ...
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Energy carriers as one of the important inputs of production and also consumer goods of households, play a very important role in determining production costs and household expenditures. Fluctuations in the price of each of these carriers will cause fluctuations in production costs, consumer spending, and ultimately inflation. Statistics show that the relative price of energy carriers as compared to the price of other domestically produced goods or the price of energy in the region and below. This gap between the price of energy carriers at home and its world price has caused its consumption trend to grow rapidly over the last decade and increase the share of carrier costs in the total consumption basket. In this regard, one of the important issues in explaining energy carrier price correction policy is to study the effects and consequences of the implementation of this policy on macroeconomic variables to identify the cause and effect relationships between the mentioned variables, the mechanism of providing correctional or supportive and institutional policy to reduce potential negative consequences and the economy is on the way to increasing efficiency. This paper examines the challenges of managing the consumption of energy carriers in Iran.
