Impact of energy carriers' price distortions on energy allocative efficiency: the case study of Iranian provinces.

Government control distorts energy prices which leads to loss of optimal factor combination and, as a result, affects efficiency. Previous researches on energy price distortions did not pay attention to the allocative efficiency specifically. In this paper, we empirically estimate the impact of energy carriers' price distortion on allocative efficiency in 28 Iranian provinces during 2002-2015 using Stochastic Frontier Analysis (SFA).