Mehdi Akhavan; Mohammad Medi Askari; Maghsood Emani
Abstract
[English] The study of oil and gas contracts require coherent theoretical framework that links different disciplines. Transaction cost economics present an interdisciplinary approach for analyzing contractual issues. Since 1995 three generations of buy-back contracts implemented in Iran .This study ...
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[English] The study of oil and gas contracts require coherent theoretical framework that links different disciplines. Transaction cost economics present an interdisciplinary approach for analyzing contractual issues. Since 1995 three generations of buy-back contracts implemented in Iran .This study for analyzing opportunism, one of TCE behavioral assumptions, focused on the first generation contracts. Opportunism is interest seeking without considering principles and consciences that do not maximize common interest. The buy-back contract parties have different interests that are not aligned with each other. The contract is incomplete; there is asymmetry in information and investment structure, so opportunism is possible. Some forms of Shirking of obligations, enforcing to renegotiation and inflexibility under new circumstances in buy-back contract, are examples of ex-post opportunism. Because of the vulnerability of the parties due to their specific investment in the project, monitoring mechanisms in the buy-back contract is not able to prevent from opportunism. Incentives alignment is another solution for opportunistic behavior that occurred in test period, but not in cost minimization and using more efficient technologies.
Mohammad Reza Shokouhi
Abstract
Today, there are many types of contracts in the world. However, Managers and other experts don’t know enough about those of contracts attributes and, maybe, they face many problems in adjusting the working relationship. On the other hand, it seems that there are very few studies regarding this ...
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Today, there are many types of contracts in the world. However, Managers and other experts don’t know enough about those of contracts attributes and, maybe, they face many problems in adjusting the working relationship. On the other hand, it seems that there are very few studies regarding this issue due to the fact that contracting is an interdisciplinary approach. Hence, this paper assumes the standard problem of Transaction Cost Economics as the basis of the analysis and by classifing constructual contracts into the two groups of build or buy, attemps to analyse the structure of both groups. This paper by dividing Contractual Relationships into two groups has made use of some cases from Iranian oil industry. This approach is interdisciplinary and it is shown that an improved understanding of the concepts can help managers and other decision makers to arrive at more efficient decisions.
Mohammad Sayadi; Javid Bahrami
Abstract
The main objective of this study was to evaluate the effects of oil revenue, productivity and money growth rate shocks in macro-economic variables, in the context of a DSGE model with features such as the needs of infrastructure development and the existence of public investment inefficiencies and its ...
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The main objective of this study was to evaluate the effects of oil revenue, productivity and money growth rate shocks in macro-economic variables, in the context of a DSGE model with features such as the needs of infrastructure development and the existence of public investment inefficiencies and its comparison with Permanent Income Hypothesis (PIH model). The results show that oil revenue shock has increased consumption, government current and capital spending and has reduced inflation in the short run, although has increased in the medium term due to the demand side push. The results revealed that the National Development Fund and consequently the Fund's concessional facilities to the private sector has been raised. In addition, because of the structure of the economy that was largely unproductive and the government activity in the economy would lead to crowding out effect, the oil revenue growth has little effect on the growth of non-oil producing sector. More over, each of the productivity and monetary shocks in the model has resulted the same theoretical expectations. Results also show that the implementation of fiscal policy based on PIH Scenario has better effects on macroeconomic variables in comparison with the business as usual scenario.
Alireza Ghafari; Atefeh Taklif
Abstract
The lack of observing maximum efficient recovery in the process of production from South Pars-North Dome super-giant field has resulted in serious damage to its rate of recovery. Despite the existence of conventional strategies for exploiting joint fields in international treaties, Iran and Qatar has ...
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The lack of observing maximum efficient recovery in the process of production from South Pars-North Dome super-giant field has resulted in serious damage to its rate of recovery. Despite the existence of conventional strategies for exploiting joint fields in international treaties, Iran and Qatar has not attempted to utilize these treaties in order to arrive at an efficient production trajectory. To achieve a feasible strategy, the use of rational decision-making model is recommended in this paper. This will allow both countries to formulate joint decisions in reservoir management towards achieving maximum efficient recovery from this field should the conditions and assumption of the model are satisfied. In order to achieve this objective it is necessary that both countries initiate fundamental improvements in their oil and gas legal systems. Hence a number of necessary improvements are introduced upon the identification of some weaknesses in oil and gas law in both countries.
Mehran Kianvand; Asadollah Farzinvash
Abstract
Iran Energy Exchange started to work on 03/09/2013. Electricity trading is carried out within the framework of forward contracts in this exchange. This paper examines the impact of trading in the electricity forward market on the volatility of electricity spot market. Using daily data of electricity ...
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Iran Energy Exchange started to work on 03/09/2013. Electricity trading is carried out within the framework of forward contracts in this exchange. This paper examines the impact of trading in the electricity forward market on the volatility of electricity spot market. Using daily data of electricity market prices between 03/21/2011 to 06/21/2015, we employed GARCH technique to investigate the impact of forward trading on the volatility of the spot market in Iran. Our two main findings are as follows: (1) forward trading has led to increased volatility in Iran electricity spot market, (2) there is an increase in sensitivity to new information while sensitivity to historical information decreases after introduction of the electricity forward contracts.
Seyed Nezamuddin Makiyan; Ali Norouzi; Abutaleb Kazemi; Mohammadnabi Shahyki Tash; Parvaneh Zangiabadi
Abstract
This study aims at analyzing the energy intensity and also the effect of changes in the production technology on the efficiency of energy consumption in Iranian manufacturing sector. To this end, a regression method entitled the Translog Cost Equation Function is used to evaluate the energy consumption. ...
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This study aims at analyzing the energy intensity and also the effect of changes in the production technology on the efficiency of energy consumption in Iranian manufacturing sector. To this end, a regression method entitled the Translog Cost Equation Function is used to evaluate the energy consumption. The period of investigation is 1999- 2011. The results show that the energy intensity in the period of investigation is equal to 0.08 percent which indicates the effectiveness of this variable in the industrial sector. Findings also demonstrate that the technology had the lowest effect, while the small change in the price of energy (i.e. substitution and budgetary effects) had the highest effect on the energy intensity. This means that due to the structure of the industrial sector of the Iranian economy and the low price for energy as well as its adequate supply has led to the utilization of energy intensive components.
