Effect of Removal of Energy Subsidies on Iran's Rubber Industry Competitiveness (Case Study: Yazd Rubber Industries Complex)

One of the industries which may affect the law enforcement of subsidies targeting is rubber industries. One of the factors affecting product’s cost price is energy price and because product's cost price is the source of competitiveness for an industry in market so this research analyzes the effects of this law on competitiveness of the rubber industry's products. Generally, the concepts of competitive advantage and coefficients protection are used to analyze the effect of removal energy subsidies on competitiveness of Yazd rubber industry complex's products. The results indicate the existence of competitive cost in Radial and Tube factories before removal energy subsidies. After removal energy subsidies Tube's products maintained their competitive advantage but Radial's products have lost their competitive advantage. Bios products don’t have competitive advantage before and after removal energy subsidies. However, the Bios products are strongly supported and Radial's support is negligible and Tube productions are not protected at all.