A Study and Identification of Risks of Targeted Payments of Subsidies

These days our country is facing fundamental difficulties regarding,the production structures, management of energy consumption and anequitable distribution of subsidies. In Iran production has been foundedon cheap (almost free) energy, and for this very reason the productivityof energy is very low. Similarly, the dependence of the country onenergies derived from oil and gas, which are non-renewable, will makeus face the danger of an impasse in near future. At the same time thedistribution of subsidies is also extremely unfair. [Therefore] To improvethe production structures in the country, optimum management of energyconsumption and equitable distribution of subsidies, targeting thesubsidies using the most adequate methods, appears to be necessary.This applied research, using the survey research technique, to gatherinformation and data, and also the library research techniques andinterviewing the experts, tries to analyze and evaluate the risk of changingthe current method of payment of subsidies and converting them to cash.We also present a more effective general plan in order to avoid theprobable risks that this scheme could carry for the economy, and putforward the commitments required for the application of this plan.