The Effect of Change in Electricity Tariffs on Electricity Consumption and Macroeconomic Variables With Dynamic Stochastic General Equilibrium (DSGE) Approach

The purpose of this article is to investigate the impact of electricity tariffs in the domestic and industrial sectors on electricity consumption and macroeconomic variables. In this regard, statistical data for the period 1991-2020 based on seasonal frequency and dynamic stochastic general equilibrium approach (DSGE) have been used. In this study, it is assumed that there is a section in the household and enterprise section called the electricity sector subsidy. The scenario designed in this study is that in terms of a pattern of electricity consumption, electricity tariffs for high-consumption subscribers in the domestic and industrial sectors will increase. The results showed that with the price shock, the amount of electricity consumption in the domestic sector has decreased more than the industrial sector. In addition, the price shock has led to an increase in investment, GDP and consumption at the macroeconomic level. In fact, in terms of price effect and income resulting from this policy, the situation of the electricity industry and other macroeconomic variables has improved over a period of 5 years. JEL Classification: P22, H20, K32, P36, E21, C60. Keywords: Electricity Tariff, Subsidy, Energy, Home and Industrial Subscribers, Consumption, Dynamic Stochastic General Equilibrium Model.