ENERGY ECONOMICS REVIEW
Year:2020 | Volume:16 | Issue:66|Papers Count:9

Energy is one of the main factors of production in various economic activities. The development of economic activities in different countries and regions leads to higher energy consumption and production of environmental pollutants. This study uses an Input-Output model based on the CHARM RAS method to investigate the role of economic activities in Khorasan Razavi province in the production of environmental pollutants, CO2 and CO emissions, in response to various policy scenarios (changes in government spending, household costs, and capital formation). The results showed that a 10 percent increase in household spending, government spending, and capital formation increased CO2 emissions by 58. 3 percent, 71. 4 percent, and 12. 5 percent, respectively, and increased CO emissions by 125. 5 percent, 165. 5 percent, and 25. 6 percent respectively. These results indicate the role and importance of government policies in environmental pollutants. The industrial sector was also identified as the main producer of environmental pollutants, accounting for 97% of the increase in pollution in various scenarios. The results also showed that the provincechr('39')s key polluting activities include "manufacturing coke and petroleum products", "extracting crude oil, natural gas and mining support services", "manufacturing chemicals and chemical products", "Electricity transmission and distribution", and "ground transportation".

The researches have generally ignored the effect of an oil price shock passing through financial channel. To fill this gap, we examine the impact of a fall in oil price on output and inflation through trade and financial channels by using a Global VAR (GVAR) model in oil-exporting countries. Our sample includes 15 OPEC and non-OPEC oil-exporting countries, 14 oil-importing countries and European: union: as a block. Our GVAR model is estimated for the period 1990Q1-2017Q4. We show that a combination of trade and financial channels better capture the oil shock transmission mechanism in our model. The impulse-response functions indicate that an oil price falling results in a sustained decline in output of oil-exporting countries. Furthermore, the impact of a negative oil price shock on inflation in developing oil-exporting countries is positive, whereas its effect on the inflation in developed oil-exporting countries is negative. Moreover, we show that the responses of real exchange rates to a falling oil price might partially explain higher inflation rate in these countries. We conclude that a fall in oil prices might bring about stagflation in developing oil-exporting countries. These findings might have importance policy implications for policymakers and social planners in developing oil-exporting countries.

We undertook a sensitivity analysis of the key demand factors leading to changes of energy consumption in the competitive market, using a Leontief demand-driven approach. We applied the Leontief model to previous research results to study the most sensitive factors leading to the change of energy demand in different economic sectors. Based on the 2011 Iranian symmetrical input– output table, the results show that the secondary energy sector, transportation, wholesale and retail, manufacturing of basic metal and fabricated metal products and non-metallic mineral products respectively have the highest direct and indirect average technologically normalized elasticities of energy demand. Our results indicate that we can reduce energy demand substantially through technological innovations in the above mentioned sectors.

The behavior of OPECchr('39')s main exporter, Saudi Arabia and OPECchr('39')s core members (Kuwait, Qatar, and UAE) are of concern to Iran and other oil importing or exporting countries. Excess oil production capacity of OPECchr('39')s core countries lets them to have different behavior in normal and exceptional periods. In this paper, we apply a modified griffin’ s model to seasonal data for the 2000-2018 period to estimate production of core members using the ARDL method. Empirical results show that Qatar’ s exports in the normal period are coordinated with other members but in exceptional periods (wars, sanctions, … ) is not coordinated with the rest of OPEC countries. But the other OPEC core members (Kuwait and UAE) have the same coordination in normal and exceptional periods.

OPEC acts as a crude oil balancing producer and is an important player in the global energy equations. It is therefore important for us to identify the norms that govern OPEC’ s behavior in different time periods. Understanding these norms will help us to explain and forecast the future decisions of this influential organization on the crude market. We use information about 20 factors that impact production, such as various contract modules for joint and independent fields, transfer of technology as well as financing methods for development projects, to determine the reasons for member’ s divergence from their agreed production to quotas. Our study indicates that market share and revenue maximization policies are the key factors that lead to non-compliance of member states with their quotas.

The development and exploitation of the countrychr('39')s gas fields requires huge investments that will require appropriate monetization strategies to offset these costs and generate revenue for the government. This study describes the most important gas monetization strategies, including pipeline, LNG, GTL, petrochemical, CNG, GTW and GTS, and emphasizes the need for utilize the appropriate strategies for each field. What is important in comparing and selecting these strategies for Iranchr('39')s gas fields is to adopt a large-scale, multi-dimensional approach and multi-criteria decision-making approaches that require the identification of criteria that are important to experts and decision-makers. Therefore, 19 criteria including multiple components in technical, economic and commercial, environmental, political and market areas were extracted through literature review and have been basis for questionnaire preparation. Then, using the single-stage fuzzy Delphi method, participantschr('39') opinions about the importance of these criteria were obtained and with the help of screening threshold, four criteria were removed and 15 criteria were identified. Criterion products market earned the highest score and criterion alignment with government policies earned the lowest score.

The use of revenue from natural resources, including oil, has always attracted the attention of politicians, economists and political scientists as well as various social groups. Here, we study the optimal consumption of oil revenues under different interest rate and social discount rate scenarios, and presence of Dutch disease, using a dynamic computable general equilibrium approach. The results of the research show that we can only achieve an optimal level of Dutch disease if the social time preference rate is lower than the interest rate. This will optimize the Dutch disease by increasing the consumption path and increasing the relative weight of tradeable goods and increased imports. This would also increase the consumption of oil revenues in the industrial sector, which is one of the main consumers of petroleum products. This path reduces the use of oil revenues in the agricultural sector. We note substantial allocation of oil revenues in the oil and power sector. The share of the service sector has a slight upward trend. Exports of crude oil initially increases and then decreases, due to the aging of oil reservoirs and consequently lower recovery.

This paper studies the non linear relationship between energy prices, natural resources rent opportunities and renewable energy consumption under different economic growth rates for OPEC member countries during the 2005-2016 period. Using a panel smooth transition regression (PSTR) model, our findings prove a non-linear relationship between renewable energy consumption and the rate of economic growth; with a GDP growth rate of 4. 24% being the threshold at which the nature of the regression relationship. The consumer price of energy, is significantly positively correlated with the contribution of renewables to energy supply in the regime with higher-economic growth, but in the lower GDP growth rate regime the relationship is significantly negative. This result is expected beacause of cheap natural resources, subsidied fuel prices and lack of renewable energy infrastructure development in OPEC member countries. The impact of natural resources rent opportunities was significantly negative in both regimes, but this effect is significantly reduced for high growth rates. Therefore, in countries characterized by high rates of natural resources rents reduces the positive impact of GDP growth rate on use of renewable energies.