Karim Eslamloueyan; Ali Hussein Ostadzad
Abstract
Environmental tax and subsidy are two key instruments used in many countries to prevent environmental degradation and to achieve sustainable development. Using game theoretic approach, this paper develops and calibrates a model to determine optimum indirect environmental tax for Iran. More specifically, ...
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Environmental tax and subsidy are two key instruments used in many countries to prevent environmental degradation and to achieve sustainable development. Using game theoretic approach, this paper develops and calibrates a model to determine optimum indirect environmental tax for Iran. More specifically, in the first stage the government sets green taxes and subsides, and in the second stage, the final goods and energy producing firms take these rates and choose their inputs. This dynamic game is solved by backward induction. Prior to our calibration, the production functions for fossil energy, renewable energy - as an intermediate goods - and final goods are estimated. The model is calibrated by using the Iranian data for the period 2015. The results indicate that the optimum green tax rate on fossil energy producing firm and final goods firm are 18 and 9 percent, respectively. These results have important policy implications for policymakers and social planners in Iran.
Hossein Amiri; Lesyan Saedpour; Abas Kalantary
Abstract
This paper evaluates the threshold effect of income on carbon dioxide emissions intensity in the MENA countries using panel smooth transition regression model. For this purpose, the variables of financial development, openness, energy intensity, income per capital and carbon dioxide emissions intensity ...
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This paper evaluates the threshold effect of income on carbon dioxide emissions intensity in the MENA countries using panel smooth transition regression model. For this purpose, the variables of financial development, openness, energy intensity, income per capital and carbon dioxide emissions intensity over the period 1980 to 2011 are employed. While the results strongly indicated the existence of a nonlinear relationship, considering one transition function and two threshold parameters is sufficient to specification of nonlinear relationship among variables. The empirical results show that the slope parameter in which the speed of adjustment represent from one regime to another one is estimated equivalent of 78762, and two threshold parameters estimated 1176 $ and 11614 $ based on income per capita respectively. The variables of openness and income per capital lead to reduce carbon dioxide emissions intensity in both regimes in which the impact of income per capital in first regime and openness in second regime is greater than another regime. Although, financial development leads to slight increase in carbon dioxide emissions intensity in the first regime, but in the second regime leads to decreases it.
Zahra Azizi; Ali Faridzad; Morteza Khorsandi
Abstract
Energy intensity is one of the important and attractive indicators in energy economics. According to the abundance of energy resources in Iran, these resources are not used properly and therefore energy intensity is very high compared to other countries. Hence in this paper using a nonlinear regression ...
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Energy intensity is one of the important and attractive indicators in energy economics. According to the abundance of energy resources in Iran, these resources are not used properly and therefore energy intensity is very high compared to other countries. Hence in this paper using a nonlinear regression method, we study the factors affecting energy intensity in Iran during the period 1979-2013. The results indicate that the existence of two regimes by considering relative price of energy as transition variable with the threshold about 1.58. The rate of urbanization and industrialization had positive effect and the level of technology and relative price of energy had negative effect on energy intensity in Iran. The effectiveness of relative price in the high price regime is intensified and the effectiveness of industrialization and technology is dropped. These results would suggest the important role of price regime on the effectiveness of energy intensity determinants in Iran and leads policy makers to prevent the decrease in the relative price of energy in the years following the implementation of targeted subsidies.
Zahra Karimi Moghari; Shahryar Zaroki; Hamidreza Taghipour Khoeini
Abstract
It is common to use the criteria of Energy intensity in micro levels for showing the efficiency of manufacturing systems, and in macro levels for comparing the productivity level of energy between countries. Accordingly in this research we investigate the effect of gasoline price with the rest of macro-economic ...
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It is common to use the criteria of Energy intensity in micro levels for showing the efficiency of manufacturing systems, and in macro levels for comparing the productivity level of energy between countries. Accordingly in this research we investigate the effect of gasoline price with the rest of macro-economic variables on energy intensity in Iran and Turkey in the period of 1980-2013, by using of both Johansen-Juselius and error correcting models. The estimated results show that the gasoline price has negative effect on Energy consuming intensity in both countries, so that increasing the gasoline price in Turkey has leaded to more decrease in energy consuming intensity in short- run and long-run. Although Technology had negative effect on energy intensity in both countries in long-run, but in Iranian economy, it had positive effect in short-run and shows that manufacturing technological change in the country couldn’t have led to improve efficiency. Also in both countries, the policy of reforming energy prices was effective through decreasing subsidy on energy carriers.
Sharareh Majdzadeh Tabatabaei; Ebrahim Hadian; Mansour Zibaei
Abstract
The main purpose of this paper is to determine the amount of subsidy required to promote the share of renewable energy in total electricity production. To do so, different scenarios have been studied by a hybrid approach of Computable General Equilibrium model. The results have been created by entering ...
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The main purpose of this paper is to determine the amount of subsidy required to promote the share of renewable energy in total electricity production. To do so, different scenarios have been studied by a hybrid approach of Computable General Equilibrium model. The results have been created by entering the details of technology-specific information for electricity generation into this model. The result of codification and calibration of the model shows that in the case of applying same subsidy to achieve 10 present shares of renewable energies in total electricity production, there is a need for 851 percent subsidy rate. Although in this case the wind energy is the only activated resource and the solar and biogas sections have not succeeded in achieving any rise in production rate. The other scenario was based on the unequal subsidy, proportional to disadvantage of different renewable energy. The result shows that, to achieve a balance growth of 4 percent energy productions from renewable sources, the rate of subsidy for wind energy should be 887 present. This rate for solar is 1776 present and for biogas is 1585 present. So, in the first scenario, the proper tariff for purchase of electricity from renewable energy is 4100 Rials per kWh. This tariff in the second scenario is 4260, 8520 and 7600 Rials per kWh respectively.
Mohammad Mowlaei; Moslem Yaghoobi
Abstract
The Considerable Share of natural gas in the energy basket and the growing trend in the residential sector on one hand and the exhaustible resource of natural gas as a nonrenewable resource on the other hand, make necessary to optimize the consumption of natural ...
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The Considerable Share of natural gas in the energy basket and the growing trend in the residential sector on one hand and the exhaustible resource of natural gas as a nonrenewable resource on the other hand, make necessary to optimize the consumption of natural gas. The government performed the targeted subsidies law in 18 December 2010 in Iran with the purpose of optimizing consumption of gas and the other energy carriers. According to this law, the government has increased the price of energy carriers (including natural gas) gradually and omitted the energy subsidies, but gives subsidies to some social groups in each month. The main question of this study is that" Has the targeted subsidies caused to economize the gas consumption in residential sector?" For answering the mentioned question, first, the demand of natural gas of residential sector in Iran's region7 (including provinces of Kurdistan, Hamedan, Kermanshah, Ilam, Lorestan and Markazi) is estimated during 2006-2013, using the quarterly based on FMOLS model. Then, the elasticities of price, income and cross of demand are calculated. second, the government performance based on targeted subsidies law on gas consumption in region7 is studied. The results show that the reaction of consumers of natural gas in economizing of gas is not tangible and the policy of targeted subsidies has not been more effective and it has been missing its impact in the residential behaviors for economizing of natural gas.
