Zohreh Salimian; fatemeh Bazzazan; Mirhossein Mousavi
Abstract
Energy-intensive industries in Iran are responsible for a significant share of energy consumption, especially oil products. Therefore, there is a major focus on promoting energy efficiency in such industries. Energy efficiency improvement results in rebound and backfire effects. In this paper we estimate ...
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Energy-intensive industries in Iran are responsible for a significant share of energy consumption, especially oil products. Therefore, there is a major focus on promoting energy efficiency in such industries. Energy efficiency improvement results in rebound and backfire effects. In this paper we estimate the effects of fuel oil efficiency improvement in energy intensive industries based on intertemporal general equilibrium model. Simulation for long run period is done for two scenarios, including 3.1% efficiency improvement in energy intensive industries and all sectors of economy. Results show that the rebound effects in chemical industry, food and beverage, basic metal, paper, Rubber and plastic, non- metallic minerals, and wood industries leads to rebound effects in the first scenario. In the long-run, backfire effects are seen in the second scenario in which efficiency improvements for all sectors is considered. In addition, efficiency improvement will result in production cost decrease. Chemical and non- metallic mineral industries experiencing the most decreases of production cost around 1.1% and 0.7%, respectively.
Mohammad Nabi Shahiki Tash; Ali Norouzi; Ghulam Ali Rahimi
Volume 2, Issue 6 , April 2013, , Pages 75-105
Abstract
In this Study, We applied Translog cost function with four Input (Labor, Capital, Energy and Material) and ISUR[1]method for analysis of the cost structure of 11 most Energy intensive sub sector industries (With 4 Digit ISIC[2]code) of Manufacture of other Non-Metallic Mineral Products (Code26) and Manufacture ...
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In this Study, We applied Translog cost function with four Input (Labor, Capital, Energy and Material) and ISUR[1]method for analysis of the cost structure of 11 most Energy intensive sub sector industries (With 4 Digit ISIC[2]code) of Manufacture of other Non-Metallic Mineral Products (Code26) and Manufacture of Basic Metals (Code 27) during the period 1375-87. Input Share, Economies of Scale, Minimum Efficient Scale, Own-cross price elasticity and Morishima elasticity of substitution were calculated. The important results of this study is the detection of Scale effects, which reveals possibilities for increasing Scales (products) and reducing costs. The result of Cross-price and Morishima Elasticity of substitution shows that all Input substitution elasticities areElastic. This case indicates that the Firm's Manager of Energy intensive industries have a lot of options to substitute one input for the other inputs.
[1]. Iterative Seemingly Unrelated Regressions
[2]. International Standard Industrial Classification
