individual competition and not on political party
list-based competition.
13
The structure of the Iranian parliament
appears to enhance the influence of rural areas.
The MPs who represent non-metropolitan rural
areas are likely to deal with and care about
agricultural issues more than their counterparts
representing urban areas. However, rural areas
are more scarcely populated.
Figure 3 shows the distribution of the population represented by each MP in different electoral districts, and the relationship between the
share of households involved in agriculture and
the number of constituents within a district.
Panel A shows that in 202 electoral district areas,
the number of citizens (or potential voters) represented by each MP is not proportionally distributed all over the country. Moreover, panel B
demonstrates that fewer citizens are represented
by each MP in more rural areas where agriculture
represents a major economic sector (in areas with
larger shares of households involved in agriculture). The significantly negative slope of the
univariate regression can be interpreted as evidence of an uneven distribution of MPs and an
over-representation of rural areas in the Iranian
parliament.
14 Consequently, rural elites may be
able to exert pressure on their respective MPs
and, as a result, promote their interests in the
parliament. Thus, the agricultural sector’s resistance against the 2010 reforms may have been
amplified by the biased distribution of seats in
the Iranian parliament and gives an advantage to
this sector in comparison to other industries.
3.3 Reform Process of 2010–2011
Although the general discussion about cutting
subsidies was focused on by the media, the
energy subsidies for groundwater pumping was
largely disregarded by the public. Insufficiently
informed farmers were not made aware of how
the compensation scheme to be implemented.
This lack of knowledge created a large amount of
unease among farmers and, subsequently, among
MPs who represent respective communities.
With the political representation system biased
towards rural areas, this distress may have been
transferred to the national level.
Electricity tariffs increased dramatically, but not
for the agricultural sector. During 2008–2009,
energy tariffs in the agricultural sector for normal
hours
15 and normal tariffs
16 were 13.3 rials/kWh
17
(in contrast, the off-peak
18 hour normal tariff was
3.3 rials/kWh and the peak hours
19 normal tariff was
33.3 rials/kWh). The normal hours/normal tariff for
agricultural use was 5.5 times less than for domestic
use
20 (74.4 rials/kWh) and 10 times less than for
industry use (134.51 rials/kWh) at that time
(NKEPD Co. 2011). In December of 2010, the
subsidy reforms were implemented. Electricity tariffs for groundwater pumping increased more than
tenfold to 140 rials/kWh for normal tariffs as outlined in the subsidy reform (Behzad 2010, Deputy
of Minister of Energy, MOE, announcement on
21.12.2010). In just one month, the pumping tariff
was reduced to 120 rials/kWh under the subsidy
reform (Nikbakht 2011, Deputy Minister of Agriculture, announcement on 26.01.2011). As the irrigation season approached, the pressure on the
government and the MOE increased, and the government gave up their original plan. Finally, in April
13
Source:
https://www.parliran.ir/?siteid=1&fkeyid=
&siteid=1&pageid=189, last access 23.05.2016.
14
The standard error of the intercept in the regression
panel B of Fig. 3 is 0.014 and for the slope is 0.06, which
is highly significant.
15
In summer the normal hours are 7:00–19:00, and in
winter between 6:00–18:00.
16
There were two categories of tariffs before the reform.
Each user had a quota limit up to certain level of
consumption. The cheaper tariff, which covered the
energy consumption less than quota level, was called
the “normal tariff”. Consumption above the quota was
more expensive and was called “free tariff”.
17
kWh: Kilowatt hours.
18
In summer the off-peak hours are 23:00–7:00, and in
winter between 22:00–6:00.
19
In summer the peak hours are 19:00–23:00, and in
winter between 18:00–22:00.
20
As the domestic consumption has a stepwise tariff
structure, we have calculated the average electricity price
based on a 300 kWh monthly household energy consumption (Source: https://barghnews.com/fa/news/8333,
last accessed 25.5.2016).
120
T. Jamali Jaghdani and V. Kvartiuk
list-based competition.
13
The structure of the Iranian parliament
appears to enhance the influence of rural areas.
The MPs who represent non-metropolitan rural
areas are likely to deal with and care about
agricultural issues more than their counterparts
representing urban areas. However, rural areas
are more scarcely populated.
Figure 3 shows the distribution of the population represented by each MP in different electoral districts, and the relationship between the
share of households involved in agriculture and
the number of constituents within a district.
Panel A shows that in 202 electoral district areas,
the number of citizens (or potential voters) represented by each MP is not proportionally distributed all over the country. Moreover, panel B
demonstrates that fewer citizens are represented
by each MP in more rural areas where agriculture
represents a major economic sector (in areas with
larger shares of households involved in agriculture). The significantly negative slope of the
univariate regression can be interpreted as evidence of an uneven distribution of MPs and an
over-representation of rural areas in the Iranian
parliament.
14 Consequently, rural elites may be
able to exert pressure on their respective MPs
and, as a result, promote their interests in the
parliament. Thus, the agricultural sector’s resistance against the 2010 reforms may have been
amplified by the biased distribution of seats in
the Iranian parliament and gives an advantage to
this sector in comparison to other industries.
3.3 Reform Process of 2010–2011
Although the general discussion about cutting
subsidies was focused on by the media, the
energy subsidies for groundwater pumping was
largely disregarded by the public. Insufficiently
informed farmers were not made aware of how
the compensation scheme to be implemented.
This lack of knowledge created a large amount of
unease among farmers and, subsequently, among
MPs who represent respective communities.
With the political representation system biased
towards rural areas, this distress may have been
transferred to the national level.
Electricity tariffs increased dramatically, but not
for the agricultural sector. During 2008–2009,
energy tariffs in the agricultural sector for normal
hours
15 and normal tariffs
16 were 13.3 rials/kWh
17
(in contrast, the off-peak
18 hour normal tariff was
3.3 rials/kWh and the peak hours
19 normal tariff was
33.3 rials/kWh). The normal hours/normal tariff for
agricultural use was 5.5 times less than for domestic
use
20 (74.4 rials/kWh) and 10 times less than for
industry use (134.51 rials/kWh) at that time
(NKEPD Co. 2011). In December of 2010, the
subsidy reforms were implemented. Electricity tariffs for groundwater pumping increased more than
tenfold to 140 rials/kWh for normal tariffs as outlined in the subsidy reform (Behzad 2010, Deputy
of Minister of Energy, MOE, announcement on
21.12.2010). In just one month, the pumping tariff
was reduced to 120 rials/kWh under the subsidy
reform (Nikbakht 2011, Deputy Minister of Agriculture, announcement on 26.01.2011). As the irrigation season approached, the pressure on the
government and the MOE increased, and the government gave up their original plan. Finally, in April
13
Source:
https://www.parliran.ir/?siteid=1&fkeyid=
&siteid=1&pageid=189, last access 23.05.2016.
14
The standard error of the intercept in the regression
panel B of Fig. 3 is 0.014 and for the slope is 0.06, which
is highly significant.
15
In summer the normal hours are 7:00–19:00, and in
winter between 6:00–18:00.
16
There were two categories of tariffs before the reform.
Each user had a quota limit up to certain level of
consumption. The cheaper tariff, which covered the
energy consumption less than quota level, was called
the “normal tariff”. Consumption above the quota was
more expensive and was called “free tariff”.
17
kWh: Kilowatt hours.
18
In summer the off-peak hours are 23:00–7:00, and in
winter between 22:00–6:00.
19
In summer the peak hours are 19:00–23:00, and in
winter between 18:00–22:00.
20
As the domestic consumption has a stepwise tariff
structure, we have calculated the average electricity price
based on a 300 kWh monthly household energy consumption (Source: https://barghnews.com/fa/news/8333,
last accessed 25.5.2016).
120
T. Jamali Jaghdani and V. Kvartiuk