Effects of Energy Subsidy Reform on Economic Variables in Agricultural Sector

This paper aims to study the effects of energy subsidy on subsectors of agriculture. For this purpose, input – output table of 2013 was used. The effects of Increase in price of energy carriers (gasoline, kerosene, gas oil, fuel oil, liquid gas, electricity and natural gas) in the first (2010) and second (2014) phases of subsidy reform on the growth rate of agriculture sector investigated. The results showed that the average growth rate of farming and horticulture (1.52%), fishing (0.27%) and forestry (0.01%) was increased while the average growth rate of animal husbandry sub-sector decreased (-2.12%). The average increase in prices of farming and horticulture, animal husbandry, fishing and forestry products was by 0.54%, 0.89%, 1.01%, and 0.11% respectively.