Assessment of socio - economic effects of targeted subsidies law of energy carriers

According to the implementation of targeted subsidies law of energy carriers, the present study was done to examine the socio-economic effects of the law implementation. For this purpose, social accounting matrix of the year 1380 was prepared and general equilibrium model was developed. Since Gasoline and diesel has tow prices, the effects of targeted subsidies law of energy carriers were simulated in two scenarios. The results of two aformentioned scenarios showed that targeted subsidies of energy carriers would reduce demand for primary inputs of production, income of economic- social institutions especially households income. Given that the urban households are the main suppliers of primary inputs of production, their incomes will decrease more than rural households and three other institutions (government, public and private companies).