because of electricity subsidies, electricity price in iran is much lower than its real value, and the growth of electricity demand is much more than its rational rate, which in turn implies ever increasing investment in the electricity section by the government. therefore, the recent government policies are based on elimination of electricity subsidies, followed by commissioning complete elect...

In India, electric utilities are owned and operated by the government. This paper explores whether these utilities have functioned to maximize social welfare and whether electricity pricing, through the provision of agricultural subsidies, has been manipulated for political purposes. We first explore the benefits of electricity subsidies to the agricultural sector between 1995 and 2004. A simpl...

Because of electricity subsidies, electricity price in Iran is much lower than its real value, and the growth of electricity demand is much more than its rational rate, which in turn implies ever increasing investment in the electricity section by the Government. Therefore, the recent Government policies are based on elimination of electricity subsidies, followed by commissioning complete elect...

In this paper we estimate the effect of agricultural electricity subsidies in India on groundwater extraction and agricultural output. Our empirical approach exploits changes in state electricity prices over time controlling for aggregate annual shocks and fixed district unobservables. Electricity subsidies meaningfully increase groundwater extraction, where the implied extensive margin price e...

In India, expenditure on electricity subsidies for agriculture, an input subsidy aimed at improving agricultural productivity and the incomes of the agricultural work force, exceeds that spent on health or education. Yet the benefits and beneficiaries of these policies have been unexplored. This paper develops and empirically tests a model that describes the channels through which these subsidi...

Under perfect competition on the output market, first best technology subsidies in the presence of learning by doing are justified by knowledge spill overs that are not accounted for by individual companies. First best output subsidies are thus depending directly on the learning effects and are, if applicable, positive. Considering electricity markets, a setting of imperfect competition is more...