 Analysis of energy policy reform in Iran: Energy and emission intensity changesHasan Raei, Abbas Maleki and Zakariya Farajzadeh Economic Analysis and Policy, 2024, vol. 81, issue C, 1535-1557 Abstract: The Subsidized energy system of Iran, with its high financial burden, failed to achieve its intended economic goals, resulting in increased energy consumption and pollutant emissions. Energy product subsidies in Iran are among the highest in the world and have important implications for developing countries. This study examines the impact of subsidy removal policy on energy and emission intensities using a Dynamic Computable General Equilibrium model. The findings reveal that after subsidy removal, total output experiences an annual growth of around 1.5%, with output composition changes mainly favoring agriculture and services that are less energy dependent. However, prices soar by at least 10% owing to the higher costs of energy products. The decreasing trend in energy intensity after subsidy reform is accompanied by a decrease in emission intensity. Higher prices of energy after subsidy removal and the corresponding improvement in the efficiency of energy consumption lead to lower emission intensity. Keywords: Energy subsidy; Energy intensity; Emission intensity; Dynamic CGE (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:81:y:2024:i:c:p:1535-1557 DOI: 10.1016/j.eap.2024.02.023 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
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