Yaghob Fatemi Zardan; Mohammad Hassan Fotros; Hamid Sepehrdost; Mohsen Khezri
Abstract
One of the most important topics in economics is the study of utility and social welfare. Therefore, the purpose of this paper is to derive the utility function and social welfare function of the provinces of Iran during 1380-1396. For this purpose, the regional utility function is used to extract the ...
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One of the most important topics in economics is the study of utility and social welfare. Therefore, the purpose of this paper is to derive the utility function and social welfare function of the provinces of Iran during 1380-1396. For this purpose, the regional utility function is used to extract the utility of the provinces. To calculate these functions, the Autoregressive Distributed Lag Panel data(pmg/ARDL) was used in Eviews 9 and Excel software. Then, the Bergson-Samuelson welfare function, which is computed as a sum of utility, was used to calculate the social welfare function. Finally, beta convergence method was used to investigate welfare convergence between provinces of the country. The results of the extraction of utility and social welfare function show that social welfare has been in steady growth in the period 1380-1386. After a slight decline in 1387, it increases again. In 1392, this growth stops and increases again in 1394 and 1395. This increase continues until 1394 and declines during the years of 1395 and 1396. Also, the results of beta convergence show that the provinces such as Chaharmahal-e-Bakhtiari, Qazvin, Lorestan and Kurdistan have the highest convergence rate, considering the Solow-Swan hypothesis, they are less welfare than other provinces and provinces such as Tehran, Isfahan, Hamedan and Markazi, which have lower convergence rates, have higher levels of welfare. While, the convergence rate for the country is -0.1718. This means that the entire provinces, on average, are moving toward an average welfare of 17.18% annually. Also, since the beta convergence coefficient for provinces and countries is between zero and negative one, the existence of convergence in provinces and countries is confirmed.
Economic Growth
Salman SotoodeNia; Mohammad Taher Ahmadi Shadmehri; Seyed MohammadJavad Razmi; Seyed Mohammad FahimiFard
Abstract
In this study the effects of levying various green taxes (base, 5%, 10% and 20%) on Iran’s fossil energy consumption (oil gas (OG), natural gas (NG) and gasoline (GA)), pollutant gas emission and social welfare was studied using a Recursive Dynamic Computable General Equilibrium (RDCGE) model. ...
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In this study the effects of levying various green taxes (base, 5%, 10% and 20%) on Iran’s fossil energy consumption (oil gas (OG), natural gas (NG) and gasoline (GA)), pollutant gas emission and social welfare was studied using a Recursive Dynamic Computable General Equilibrium (RDCGE) model. In order to RDCGE calibration, the Iran’s social accounting matrix (SAM)) and base scenario was used. Required data was gathered from central bank of Iran (CBI), Iran’s statistic center and ministry of energy during 2008-2016 seasonality. Also, for data analyzing Matlab software was applied. Results indicate that in while increasing green tax, a positive shock of economic growth (1%), reduces the increasing trend of OG, NG and GA. Also, levying 0% and 5% green tax couldn’t make the consumption of mentioned energies efficient, levyeing 10% green tax makes the consumption of NG and GA efficient and levying 20% green tax makes the consumption of mentioned energies efficient. In addition, while increasing green tax, a positive shock of economic growth (1%), reduces the increasing trend of gas pullotants emission and in orther to decreasing gas pollutants emission during economic growth, 10% green tax should be levy. Finally, while increasing green tax from 0% to 5%, 10% and 20%, a positive shock of economic growth (1%) increases the social welfare, less than 1%, more than 1% and less than 1%, respectively. Therefore, between studied scenarios, levying 10% green tax is the best for increasing social welfare.