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Resource rents distribution, income inequality and poverty in Iran

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  • Farzanegan, Mohammad Reza
  • Habibpour, Mohammad Mahdi

Abstract

Our goal is to examine the income inequality and welfare effects of the direct distribution of resource rents and subsequent taxation in Iran. We use survey-based microdata that covers 140,000 individuals, which include more than 36,000 Iranian urban and rural households in 2009. We examine how direct distribution of oil and gas rents among all citizens and a subsequent direct income tax differ from distributional impacts of targeted policies on income inequality and poverty in Iran. Our analysis shows that the resource dividend policy with a subsequent direct income tax has a significant decreasing effect on the household Gini index while targeted policies are more effective in reducing number of households under the poverty line.

Suggested Citation

  • Farzanegan, Mohammad Reza & Habibpour, Mohammad Mahdi, 2017. "Resource rents distribution, income inequality and poverty in Iran," Energy Economics, Elsevier, vol. 66(C), pages 35-42.
    • Handle: RePEc:eee:eneeco:v:66:y:2017:i:c:p:35-42
    DOI: 10.1016/j.eneco.2017.05.029
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    Cited by:

    1. Asnaashary, Mozhgan & Farzanegan, Mohammad Reza & Feizi, Mehdi & Gholipour, Hassan F., 2024. "Economic determinants of child marriage: Evidence from the Iranian provinces," Children and Youth Services Review, Elsevier, vol. 159(C).
    2. Sinha, Avik & Sengupta, Tuhin & Kalugina, Olga & Gulzar, Muhammad Awais, 2020. "Does distribution of energy innovation impact distribution of income: A quantile-based SDG modeling approach," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    3. Yan, Han, 2024. "Financial development, violence, and resource curse: How mineral resources are contributing towards growth of resource-rich countries," Resources Policy, Elsevier, vol. 89(C).
    4. Phoebe W. Ishak & Mohammad Reza Farzanegan, 2022. "Oil price shocks, protest, and the shadow economy: Is there a mitigation effect?," Economics and Politics, Wiley Blackwell, vol. 34(2), pages 298-321, July.
    5. Sergey Dianov & Lyudmila Koroleva & Natalia Pokrovskaia & Natalia Victorova & Andrey Zaytsev, 2022. "The Influence of Taxation on Income Inequality: Analysis of the Practice in the EU Countries," Sustainability, MDPI, vol. 14(15), pages 1-19, July.
    6. Mohammad Reza Farzanegan & Tim Krieger, 2018. "Oil Rents Shocks and Inequality in Iran," CESifo Working Paper Series 6876, CESifo.
    7. Mohammad Reza Farzanegan & Pooya Alaedini & Khayyam Azizimehr, 2017. "Middle Class in Iran: Oil Rents, Modernization, and Political Development," MAGKS Papers on Economics 201756, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    8. Christopher Hartwell & Roman Horvath & Eva Horvathova & Olga Popova, 2022. "Natural resources and income inequality in developed countries: synthetic control method evidence," Empirical Economics, Springer, vol. 62(2), pages 297-338, February.
    9. Suriani & Ridwan Nurdin & Muhammad Haris Riyaldi, 2020. "Causality Relationship of Zakat, Income Inequality, and Poverty: A Panel Co-Integration Approach," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 875-887.
    10. Pérez Gelves, Jhon Jairo & Østergaard, Poul Alberg & Díaz Flórez, Guillermo Andrés, 2023. "Energy poverty assessment and the impact of Covid-19: An empirical analysis of Colombia," Energy Policy, Elsevier, vol. 181(C).
    11. Mohammad Reza Farzanegan & Tim Krieger, 2018. "Oil Revenues Shocks and Inequality in Iran," Working Papers 1226, Economic Research Forum, revised 18 Sep 2018.
    12. Nassani, Abdelmohsen A. & Aldakhil, Abdullah Mohammed & Zaman, Khalid, 2021. "Ecological footprints jeopardy for mineral resource extraction: Efficient use of energy, financial development and insurance services to conserve natural resources," Resources Policy, Elsevier, vol. 74(C).
    13. Omid Zamani & Mohammad Reza Farzanegan & Jens-Peter Loy & Majid Einian, 2021. "The Impacts of Energy Sanctions on the Black-Market Premium: Evidence from Iran," Economics Bulletin, AccessEcon, vol. 41(2), pages 432-443.
    14. Phoebe W. Ishak & Mohammad Reza Farzanegan, 2022. "Oil price shocks, protest, and the shadow economy: Is there a mitigation effect?," Economics and Politics, Wiley Blackwell, vol. 34(2), pages 298-321, July.
    15. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Direct rents distribution; Poverty; Inequality; Household survey; Iran;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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