Implications of Distributional Policies on Revenues Related to Energy Carriers Price Reform for Welfare and Economic Variables in Iran in the Light of Computable General Equilibrium Model

Social and economic costs imposed by energy carriers’ price reform policy cause policy-makers to pay attention to revenue recycling of this policy and its redistribution into economics aiming at reducing or removing these costs. Thus, drawing on Computable General Equilibrium (CGE) and SAM in 2017, this paper tries to analyse economic Implications of Distributional Policies on Revenues Related to Energy Carriers price Reform. In doing so, scenarios have been considered in terms of cash payments, labour-related payments, and production-related subsides. Analysis on possible scenarios shows that if three ways of distributing avenues related to energy carriers’ price reform policy is to combine together, inflation will ensue minimally. Moreover, if government cease to distribute these avenues, gross domestic production will go through a maximal decrease, and in the event of combining three ways, or cash payments and labour-related payments, production will go through a maximal decrease, and as a result, household welfare will be minimized.