Assessment of Results of the Implementation of Subsidies Targeted on Production Activities

Due to the performance of subsidies targeted، present study has been done to examine the effects of results of the implementation of this law on production activities. Social accounting matrix of 2001 was prepared and then general equilibrium model was developed. Gasoline and diesel have two prices، so two scenarios were simulated. The results of the two scenarios showed that، targeted subsidies of energy carriers، reduces product in production activities، increases price of commodities، and decreases households'' consumption.