ANALYSIS OF ENVIRONMENTAL AND WELFARE EFFECTS OF ENERGY SUBSIDY REFOR APPLICATION OF COMPUTABLE GENERAL EQUILIBRIUM MODEL

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AMADEH HAMID; GHAFARI ALI REZA; FARAJZADEH ZAKARIA

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Journal: IRANIAN ENERGY ECONOMICS Year:2015 | Volume:3 | Issue:13 Page(s): 33-62

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Title

ANALYSIS OF ENVIRONMENTAL AND WELFARE EFFECTS OF ENERGY SUBSIDY REFOR APPLICATION OF COMPUTABLE GENERAL EQUILIBRIUM MODEL

Author(s)

AMADEH HAMID | GHAFARI ALI REZA | FARAJZADEH ZAKARIA | Issue Writer Certificate

Keywords

ECONOMIC WELFAREQ2

ENVIRONMENTAL EMISSIONQ2

COMPUTABLE GENERAL EQUILIBRIUM MODELQ1

Abstract

The second step of subsidies targeting program which is coupled with energy price reform, has multiple effects on the economy. One of the major effects is the welfare and environmental changes in the country. This study intends to analyze the environmental and welfare effects of energy price reform using a general equilibrium model. There are two scenarios of income redistribution. First, redistribution of whole income among households equally and second, redistribution of income in accordance with the subsidies targeting law. In this model, Iran's economy consists of 26 section. Households are considered separately for urban and rural in income deciles. Production factors, includs skilled labor, unskilled labor and capital. Energy carriers include electricity, natural gas, LPG, petrol, kerosene, fuel oil, and gasoline. The first scenario, leads to about 16 percent welfare increase in urban households and 53 percent to rural household. The second scenario, provides welfare increase about 3 percent for urban households and 25 percent to rural household. Considering environmental effects it is found that energy price reform is effective in reducing emissions, in total.

Cites

STUDYING THE EFFECTS OF FUEL PRICE CHANGES ON GREENHOUSE GAS EMISSIONS IN THE ROAD TRANSPORTATION SECTOR OF IRAN; NEW APPROACH OF ROBUST LEAST SQUARES

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APA: Copy

AMADEH, HAMID, GHAFARI, ALI REZA, & FARAJZADEH, ZAKARIA. (2015). ANALYSIS OF ENVIRONMENTAL AND WELFARE EFFECTS OF ENERGY SUBSIDY REFOR APPLICATION OF COMPUTABLE GENERAL EQUILIBRIUM MODEL. IRANIAN ENERGY ECONOMICS, 3(13), 33-62. SID. https://sid.ir/paper/244870/en

Vancouver: Copy

AMADEH HAMID, GHAFARI ALI REZA, FARAJZADEH ZAKARIA. ANALYSIS OF ENVIRONMENTAL AND WELFARE EFFECTS OF ENERGY SUBSIDY REFOR APPLICATION OF COMPUTABLE GENERAL EQUILIBRIUM MODEL. IRANIAN ENERGY ECONOMICS[Internet]. 2015;3(13):33-62. Available from: https://sid.ir/paper/244870/en

IEEE: Copy

HAMID AMADEH, ALI REZA GHAFARI, and ZAKARIA FARAJZADEH, “ANALYSIS OF ENVIRONMENTAL AND WELFARE EFFECTS OF ENERGY SUBSIDY REFOR APPLICATION OF COMPUTABLE GENERAL EQUILIBRIUM MODEL,” IRANIAN ENERGY ECONOMICS, vol. 3, no. 13, pp. 33–62, 2015, [Online]. Available: https://sid.ir/paper/244870/en

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