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An AHP decision making model for optimal allocation of energy subsidy among socio-economic subsectors in Iran

  • Sadeghi, Mehdi
  • Ameli, Ahmad
Registered author(s):

    This paper presents an analytical hierarchy process (AHP) decision model for sectoral allocation of energy subsidy based on several criteria. With determination of priorities for these criteria through questionnaire and AHP method, the overall rank of these criteria that have the most influence on distribution of energy subsidy among socio-economic sub-sectors, are as the following: inflation, economic growth, labor intensity, distribution of energy subsidy among socio-economic levels, energy intensity and social cost of air pollution. According to the model, the first priority for allocation of energy subsidy is commercial sector and the last priority is related to transportation sector. Investigating the impact of changing priority of the criteria on overall results indicates that the socio-economic sub sectors’ ranking in receiving subsidy have little sensitivity for changing priority of the subsidy criteria.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511010512
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    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 45 (2012)
    Issue (Month): C ()
    Pages: 24-32

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    Handle: RePEc:eee:enepol:v:45:y:2012:i:c:p:24-32
    DOI: 10.1016/j.enpol.2011.12.045
    Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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    11. Diego Angel-Urdinola & Quentin Wodon, 2007. "Do Utility Subsidies Reach the Poor? Framework and Evidence for Cape Verde, Sao Tome, and Rwanda," Economics Bulletin, AccessEcon, vol. 9(4), pages 1-7.
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