Cash instead of subsidy: Assessing the impact of the iranian energy subsidy reform on households

Zarepour, Zahra; Wagner, Natascha

doi:10.1016/j.enpol.2022.113145

Cited by 11 publications

(2 citation statements)

References 20 publications

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“…Moreover, as the number of elderly people in households is higher, households are more likely to face CHE. The study by Ma et al [ 15 ], Pal [ 26 ], Wyszewianski [ 37 ], Hajizadeh and Nghiem [ 11 ], and Merlis et al [ 16 ], also confirms the result. This variable was significant and positive in both models at level 99%, which means that an increase in the elderly population in the household increases the probability of suffering from catastrophic health expenditures.…”

Section: Discussionsupporting

confidence: 59%

The impact of government subsidy programs on equity in health financing

Mohammadzadeh,

Sheikhmali,

Yahyavi Dizaj

et al. 2023

Cost Eff Resour Alloc

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Background Iran government implemented the targeted subsidy plan in December 2010 to reduce energy consumption and inequality. In addition, the Health Transformation Plan was implemented by the Ministry of Health to reduce out-of-pocket payments. This study aimed to examine the impact of these two government subsidy programs on equity in health financing. Method In this study, data on 528,046 households were collected using household surveys during 14 years (2007–2020). The Fairness in Financial Contribution index and Catastrophic Health Expenditures index were calculated. Also, a Logistic regression model was performed by the applied software of Stata V.14 to examine the effects of the two mentioned policies and other socioeconomic characteristics of households on their exposure to Catastrophic Health Expenditures. Results The FFC index was 0.829 and 0.795 respectively in 2007 and 2020. The trend analysis did not show significant changes in the FFC index between 2007 and 2020. TSP and HTP implementations do not reduce households’ exposure to CHE significantly. Crowded households with more elder people, belonging to low-income deciles, without houses, and living in rural areas and deprived provinces, are more likely to be at risk of CHE. Health insurance coverage did not protect households from CHE. Highly educated and employed households were exposed to less CHE. Conclusion The government subsidy programs have not been effective in improving FFC and reducing CHE indices. None of them has been able to realize the goal of the 6th National Development Plan of reducing CHE to 1%. The government should devise support packages for target households (households with more elderly people, lower incomes, without private houses, crowded, rural, and inhabited in deprived provinces), so they can protect households against CHE. Modifying and improving the quality of insurance coverage is strongly recommended due to its inefficiency.

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Section: Discussionsupporting

confidence: 59%

The impact of government subsidy programs on equity in health financing

Mohammadzadeh,

Sheikhmali,

Yahyavi Dizaj

et al. 2023

Cost Eff Resour Alloc

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“…Empirically, the policy impact evaluation approaches such as propensity score matching (Wonde et al, 2022) are often used to test the effectiveness of certain policies. Policy studies for household income range from the issue of subsidies (Zarepour & Wagner, 2022) to applying taxes on food and beverages (Jones-Smith et al, 2022). Household income analysis is also often associated with poverty problems (Hajjar et al, 2021).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The impact of social assistance on households’ transfer behavior: A micro data analysis

Kristina,

Rasyid,

Purwanti

2023

jeb

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This paper investigates whether public transfers crowd-out inter-household transfers in Indonesia. Using household data from Indonesia Family Life Survey (IFLS-3 & IFLS-4), this study evaluates the impact of direct cash transfer programs (Bantuan Langsung Tunai, BLT) on inter-family transfer (i.e., monetary transfer from parents, siblings, child, and other family members who do not live co-residently). The results indicate that, in general, the crowding-out effect is relatively small. This effect is statistically significant only in urban households but not rural ones. This finding suggests that expanding public transfer under formal social security programs to cover poor households does not significantly reduce the existence of informal transfers. Further, public transfers potentially improve the distribution of household income.

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Short- and long-run macroeconomic impacts of the 2010 Iranian energy subsidy reform

Zarepour

2022

SN Bus Econ

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This paper examines the short- and long-run effects of the 2010 Iranian energy subsidy reform on macro indicators including GDP and inflation. The subsidy reform, which consists of a simultaneous energy subsidy cut and a cash transfer to households, is not fiscally motivated but instead aims to reduce energy consumption. Using timeseries to analyse the dynamics of the macro variables in response to the subsidy reform elements (energy price increase, and cash transfer), this study reveals that the subsidy reform has a negative effect on the economy in the short- and mid-term, and the cash transfer to households does not fully compensate for this adverse effect. These results are robust and consistent across specifications. The main channel that transmits the effect of energy price to GDP is value-added of industry and service sectors. The long-run analysis rejects the existence of a long-run relationship between the energy subsidy reform and GDP. The findings indicate that the energy subsidy reform does not result in a reduction in energy consumption. These findings challenge the environmental aspect of the fossil fuel subsidy reforms as stand-alone policies without major reforms in the energy efficiency of economic sectors.

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Cash instead of subsidy: Assessing the impact of the iranian energy subsidy reform on households

Cited by 11 publications

References 20 publications

The impact of government subsidy programs on equity in health financing

The impact of government subsidy programs on equity in health financing

The impact of social assistance on households’ transfer behavior: A micro data analysis

Short- and long-run macroeconomic impacts of the 2010 Iranian energy subsidy reform

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