THE EFFECT OF ELECTRICITY PRICING POLICIES ON EMPLOYMENT AND GENERAL PRICE INDEX OF DIFFERENT ECONOMIC SECTORS IN IRAN

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ESLAMI ANDARGOLY MAJID; SADEGHI HOSEIN; GHANBARI ALI; HAGHANI MAHMOUD

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Journal: ENERGY ECONOMICS REVIEW Year:2012 | Volume:9 | Issue:34 Page(s): 101-135

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Title

THE EFFECT OF ELECTRICITY PRICING POLICIES ON EMPLOYMENT AND GENERAL PRICE INDEX OF DIFFERENT ECONOMIC SECTORS IN IRAN

Author(s)

ESLAMI ANDARGOLY MAJID | SADEGHI HOSEIN | GHANBARI ALI | HAGHANI MAHMOUD | Issue Writer Certificate

Keywords

GENERAL PRICE INDEXQ3

EMPLOYMENTQ2

COMPUTABLE GENERAL EQUILIBRIUM (CGE) MODELQ2

SOCIAL ACCOUNTING MATRIXQ2

IRANQ2

Abstract

In this study, we evaluate the effect of electricity pricing policies on EMPLOYMENT and GENERAL PRICE INDEX of different economic sectors in IRAN, through use of the computable general equilibrium model (CGE) and the SOCIAL ACCOUNTING MATRIX (SAM) for 2006. The study makes use of the GAMS software. The results of this study show that the GENERAL PRICE INDEX of different economic sectors increases as the controlled electricity prices are raised. Our simulations indicate that in the case of a sudden increase in electricity prices by 400 percent or even more, there would not be sufficient time for substituting one production factor with another. As a result in this scenario the model foresees a substantial decrease in EMPLOYMENT in all the three sectors of industry, agriculture and services. However, a gradual increase in prices allows time for economic agents to find substitutes for higher cost production inputs and hence is actually accompanied by an overall increase in EMPLOYMENT with minimal disturbances to the equilibrium point of every sector. We can therefore conclude that gradual increases in prices are preferable to a sudden increase.

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APA: Copy

ESLAMI ANDARGOLY, MAJID, SADEGHI, HOSEIN, GHANBARI, ALI, & HAGHANI, MAHMOUD. (2012). THE EFFECT OF ELECTRICITY PRICING POLICIES ON EMPLOYMENT AND GENERAL PRICE INDEX OF DIFFERENT ECONOMIC SECTORS IN IRAN. ENERGY ECONOMICS REVIEW, 9(34), 101-135. SID. https://sid.ir/paper/99501/en

Vancouver: Copy

ESLAMI ANDARGOLY MAJID, SADEGHI HOSEIN, GHANBARI ALI, HAGHANI MAHMOUD. THE EFFECT OF ELECTRICITY PRICING POLICIES ON EMPLOYMENT AND GENERAL PRICE INDEX OF DIFFERENT ECONOMIC SECTORS IN IRAN. ENERGY ECONOMICS REVIEW[Internet]. 2012;9(34):101-135. Available from: https://sid.ir/paper/99501/en

IEEE: Copy

MAJID ESLAMI ANDARGOLY, HOSEIN SADEGHI, ALI GHANBARI, and MAHMOUD HAGHANI, “THE EFFECT OF ELECTRICITY PRICING POLICIES ON EMPLOYMENT AND GENERAL PRICE INDEX OF DIFFERENT ECONOMIC SECTORS IN IRAN,” ENERGY ECONOMICS REVIEW, vol. 9, no. 34, pp. 101–135, 2012, [Online]. Available: https://sid.ir/paper/99501/en

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