The analysis of the structure of energy subsidies in Iran and their consequences clearly shows that this system has exacerbated the energy imbalance crisis. In this context, two key concepts from Daron Acemoglu and Simon Johnson in their book 'Power and Progress' are noteworthy: 'Vision' and 'Persuasion Power'.
Vision of Energy Subsidies
The 'Vision' of energy subsidies in Iran is clearly influenced by the belief that energy (oil and gas) is a national wealth and a citizen's right. This perspective justifies gasoline subsidies and personal and household consumption. At the same time, when it comes to energy subsidies for industries, this view changes: 'Cheap energy is an advantage for Iranian industry.'
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Persuasion Power and Its Impact on Policies
Persuasion power in this context depends on the power of ideas. These ideas can be justified by appealing to nationalist sentiments. For example, the inequality in the distribution of subsidies is less visible in public discourse, and policy discussions are more focused on price and mechanisms for price increases. In 2019, the sudden increase in gasoline prices and the provision of subsidies to lower-income deciles is an example of this agenda-setting power.
However, the absence of organized forces such as labor unions, independent media, and political parties in Iran has led to an increase in social protests. These protests have remained the only option for protesters due to the lack of alternatives.
Conclusion
In summary, energy subsidies in Iran benefit higher-income deciles and energy-intensive industries. This structure has led to an energy imbalance crisis due to the absence of countervailing powers in policymaking. This process clearly indicates the need for a review of energy policies and the distribution of subsidies in the country.
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