Iran's Energy Price Reform Boosts Welfare with Cash Subsidies
The article analyzes how increasing energy prices and giving cash subsidies in Iran affect households and businesses. They used a model that considers different factors like transportation costs and foreign trade. By looking at different scenarios, they found that increasing the share of cash subsidies to households can help offset some of the negative effects on welfare. In the short term, welfare and production may decrease, but imports and exports could go up. Overall, giving cash subsidies can help lessen the impact of higher energy prices on people and businesses.