Esfandiar Jahangard; Ali Asghar Banoe; Sajjad Barkhordari; Hamid Amadeh; amir doudabi nezhad
Abstract
Environmental taxes, including carbon and energy price taxes, are one of the most crucial means of market-based approach of reducing Greenhouse Gas Emissions and are widely used around the world In the present research, the effects of enforcing these two tax policies are assessed in two scenarios of ...
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Environmental taxes, including carbon and energy price taxes, are one of the most crucial means of market-based approach of reducing Greenhouse Gas Emissions and are widely used around the world In the present research, the effects of enforcing these two tax policies are assessed in two scenarios of redistribution and non-redistribution of the overall tax incomes between households (in sum, four scenarios), based on the CGE model. These two taxes make different impacts on relative prices of energy carriers. Accordingly, they have different economic effects which remained unexamined in previous researches. The results of present study, therefore, would make a clearer anticipation of the future policies effects, which will be implemented to meet the international environmental commitments of Iran. The results of simulations indicate that both taxes lead to emission reduction but carbon taxes are more efficient than energy taxes, because the former requires less amount of taxes, whereas the level of emission reduction is the same. If there’s no redistribution of tax incomes, both kind of taxes decrease the welfare and real consumption budget of households, but in case of redistribution, these indexes will increase. In all scenarios, GDP, decrease and consumer price increase will increase in different amounts and employment in 3 scenarios increase. Based on the findings of present research, enforcing the carbon tax policy, concomitant to tax incomes redistribution, are among the appropriate policies designed to reduce the greenhouse gas emission and meet the international commitments of Iran.
Jafar Ebadi; Amir Doudabi Nezhad
Volume 1, Issue 1 , January 2011, , Pages 133-179
Abstract
Almost in the entire history of 20th century, vertically integrated monopolistic companies have controlled the electricity industry. In this traditional method, these firms were the only service provider in their territory; including power generation, transition, distribution and retail. Necessity of ...
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Almost in the entire history of 20th century, vertically integrated monopolistic companies have controlled the electricity industry. In this traditional method, these firms were the only service provider in their territory; including power generation, transition, distribution and retail. Necessity of economic efficiency deployment, resulted in structural reform in electricity industry that has created variety of subjects such as restructuring, unbundling, deregulation, reregulation and privatization. Electricity industry restructuring means breaking up vertical monopolistic control of governments on industry through unbundling into competitive and uncompetitive sectors. Electricity distribution sector essentially has natural monopoly characteristics therefore is not competitive and should work under regulation. The main objective of this research is to find the most efficient incentive regulation model for electricity distribution sector of Iran by which social welfare function may be maximized. Price and revenue cap models are the most prevalent incentive schemes that have been compared with each other. To design this model, cost function of 38 electricity distribution companies has been estimated and marginal cost of each company has been assumed as the first best price. Efficiency of these companies has been calculated by means of data envelop analysis method. Afterward 2 price regulation schemes has been modeled for years 1388 until 1390. Finally, residential electricity demand function has been estimated by means of autoregressive distributed lags method. Calculation of the difference between total welfare of each model with the first best price; indicates that without considering air pollution externalities, price cap scheme maximizes total welfare. However, considering the externalities, revenue cap model is found to have better effect on total welfare.
