ENERGY ECONOMICS REVIEW
Year:2019 | Volume:15 | Issue:60|Papers Count:8

This paper, we analyze the double-dividend issues by the design of overlapping generations approach. We characterize the necessary conditions for the obtaining a double dividend, i. e. an improvement of environmental and non-environmental welfare when the revenue of the pollution taxis recycled into a change of the labor tax rate. We show that first advantage of the double dividend theory depending on; i) The level of energy consumption among elderly and young generations is not high enough so that the implementation of the energy tax policy will increase the government's revenues so much and subsequently the reduction in the tax rate on labor wages cannot keep to be fixed government revenue level. ii)The income effects of increased income labor tax on the government revenue aregreater than the substitution effects. Also, the second advantage of the double dividend theory is pertained to; i)The multiple coefficient of the setup cumulative policy (simultaneously increased energy tax and decreased labor income tax) is greater than multiple coefficient of the increased energy tax on the interest rate. ii)The multiple coefficient of the implementation this cumulative policy is lower than the multiple coefficient of the indirect effect of energy tax on the wage level of young generation.

The existence of numerous common oil and gas fields between Iran and the neighboring countries as well as Iran's less efficient exploitation of these fields compared with other beneficiary countries, has led the development of common fields to always be among the priorities of the Iran Petroleum Ministry. While introducing different methods applied for joint exploitation of common fields, this study consider the possibility of unitization between Iran and its neighboring countries. For this purpose, Iraq is considered as a best choice for cooperation in exploitation of common oil fields among Iran's neighbors. The negotiation of share and production plan is modeled as a bargaining problem which is solved by using Nash solution and concludes that whenever the profits gained by competitive exploitation of the commom field is the same for both parties, they will equally share the profit in unitization.

Foreign direct investment (FDI) is considered as a one of the important channels of financing capital internationally. FDI, in addition to compensating for the lack of capital, entails the transfer of technology, the entry of expert human capital, management, and knowledge; therefore, in order to Realizing the continuous and stable economic growth is necessary to scientifically identify the factors affecting the entry of foreign direct investment. The purpose of this study is to investigate the impact of economic, natural, political and legal factors on the attraction of foreign direct investment in OPEC member countries for the period of 2003-2014. This research has been carried out using the generalized least squares method (EGLS) in the form of a pooled data model. The results indicate that market size, openness of the economy, community health, oil reserves and rule of law have a positive and significant effect on the attraction of FDI, and economic sanctions have been important factors in reducing foreign investment attraction.

Climate change cannot control unless by reduction of GHG emissions to secure level, therefore it is important to identify driving forces and possible scenarios based on targets. In this research, the Logarithmic Mean Divisia Index decomposition approach in combination with Extended Kaya Identity (EKI) are applied to investigate five factors could affect emissions during 1971-2012 in Iran. These factors include population, GDPcapita, energy and carbon intensity and share of fossil fuels. Chaining, non-chaining methods and three emission reduction scenarios (4, 8 and 12%) based on Iran INDC forms the other parts of research. Based on results, carbon intensity, activity effect, and population contribute to increase and share of fossil fuels has a decreasing effect on emissions. The future targets of government should emphasis on change of fuel type and economic development toward low carbon. Chaining analysis could be used as a calendar, show the effect of events on parameters while non-chaining present a clear image by deleting noises. Among proposed reduction scenarios, the best and logical option emphasize on reduction of fossil fuel share (up to 40% compared to 2020) and development of renewable energies. Improvement of carbon and energy intensity (each as 50% compared to 2020) are the next options.

Recently, sustainable development and policy on improving the quality of the environment have attracted economists. The use of fossil fuel tax and subsidies to research and development are among the tools that can reduce air pollution by creating economic incentives and relative price adjustments. In this regard, the present study uses a Computable General Equilibrium (CGE) model to examine environmental impacts, the effectiveness and economic implications of using these two tools. The results show that both instruments reduce the air emissions and social costs of air pollution, while the tax effect was more efficient. Taxation of energy consumption leads to a reduction in consumption indicators, investment types, and welfare. By paying subsidies to the R&D, and resulting increase in investment in R&D, a decline rate in consumer expenditure and physical investment were observed. The welfare increases at a low rate of subsidy and decreases at higher rates.

Using natural gas is known as a clean energy resource and apart from environmental aspect, it is economically and politically of great importance so that countries having conventional and unconventional gas resources have increased investment in novel tech developments especially in unconventional ones. The aim of this study is to analyze the effect of shale gas production on the gas price in the period of 1991 to 2017 and also predicting Iran's foreign exchange income from gas exportation during the years 1396 to 1399. To do this, U. S Henry Hub gas price variables, Germany and Japan gas prices in addition to shale gas production in the form of econometrics are used and to predict the price a combination of wavelet transform and artificial neural network with dynamic system is employed. . Considering the results and evaluating the foreign exchange incomes from gas exportations in different scenarios between 2017 to 2020, Iran's best way to export gas is through pipe lines in its zone and expediting investments in transforming the natural gas to Gas To Liquids (GTL), according to the available facilities and technologies and production capacity in the country.

In this study, the impact of technological improvement and depletion in upstream sector on the average cost of oil and gas production in Iran is studied in 1967-2017. For this purpose, global technology diffusion trend is calculated, so five variables that have had the most effect on global upstream is considered. Using acquired trend for technology and taking other related determinants into account, average cost function for oil and gas production is estimated. Results show that technology variable has been an important and impressive variable in decreasing average cost until mid-1980s. One of the reasons has been the alignment of technology diffusion trend in upstream with the world up to year 1989. In other words, results show that there are no meaningful relation between cost alternation and the level of technology in upstream during 1989 to 2017 due to different reasons include: politics, war, sanctions, problems related to oil contracts and not enough attention to technology transfer. Entrance of world new technologies in Iran upstream sector has been limited and and as a result EDP process has been slow and despite increasing real investment, average production cost has had increasing trend. Finally a simple simulation approach is considered and production cost function is compared in two scenarios. By comparing these two scenarios it is learned that the average cost in Iran could be considerably lower and efficiency could be much higher than now.

In addition to the necessity of liberalizing the price of the various sectors of electricity, the regulation of sectors that still maintain their own monopoly structure is mandatory. In order to improve the efficiency of these sectors and encourage their cost reduction, incentive-based regulatory approaches are used which rely on performance evaluation. Due to the monopolistic structure of Iran's electricity distribution companies, this study is looking to provide a design for the economic regulation of these companies. Regarding the limitations of regulation in developing countries like Iran, orders of the regulation process, the shortages of each method of regulation, and characteristics of regulatory bodies in Iran, revenue cap regulation method has been chosen to as the best method for the regulation of electricity distribution companies of Iran. Also, among the different approaches of revenue cap method, building blocks approach is identified as the suitable way and offered for the period of 2016-2021. Considering that the incentive part of this approach is on operational costs, which contain the huge part of total costs of electricity distribution companies, the efficient operational costs are calculated for 2016, which could be extended for 2017-2021 using the designed approach.