Gasoline Consumption, Economic Growth And Income Inequality In Iran.

Document Type : Research Article

Authors

1 M.A in Economic Development, Economic Planning and Development Department, Faculty of Economics, Allameh Tabatabaei University, Tehran, Iran

2 Assistant Professor, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran

Abstract

Income inequality is one of the major economic and social challenges in Iran that can interact with energy consumption and economic growth.This study aims to investigate the interrelationship between gasoline consumption, economic growth, and income inequality in Iran during the period 1991 to 2023.The importance of the study lies in explaining the endogenous interactions of these three key variables and providing a framework for coordinated policymaking in the areas of energy, social justice, and sustainable development. The simultaneous equations model and the three-stage least squares (3SLS) econometric method were used to analyze the structural relationships between the variables.Annual time series data were extracted from official domestic sources and the necessary statistical tests were applied to them. The results show that increasing income inequality causes a decrease in per capita production and an increase in per capita gasoline consumption, while per capita capital has a positive effect on per capita production. Also, rising gasoline prices have reduced consumption, and economic growth and government size have reduced income inequality.In contrast, energy subsidies and gasoline consumption have been identified as factors that exacerbate inequality.The findings suggest a feedback loop between gasoline consumption, economic growth, and income distribution that should be addressed in macro-policies.

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References

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History

  • Receive Date: 13 April 2025
  • Revise Date: 02 September 2025
  • Accept Date: 18 September 2025
  • Publish Date: 21 March 2026

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