The Optimal Allocation of Iran's Natural Gas

Seyed Ehsan Alavi (), Mohammad Reza Lotfalipour (), Mohammad Ali Falahi () and Sohrab Effati ()
Additional contact information
Seyed Ehsan Alavi: Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran.
Mohammad Reza Lotfalipour: Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran.
Mohammad Ali Falahi: Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran.
Sohrab Effati: Department of Applied Mathematics, Ferdowsi University of Mashhad, Mashhad, Iran.

Iranian Economic Review (IER), 2020, vol. 24, issue 1, 75-98

Abstract: The optimal allocation of natural gas resources to various uses such as final and intermediate consumption, injection into oil fields, and exports can help policymakers to use this kind of resources efficiently. Empirical evidence support using hyperbolic discount rates instead of fixed discount rates in the economic literature. The purpose of this study is to maximize the social welfare function and analyze the optimal paths of different uses of natural gas over the next three decades based on a nonlinear dynamic programming model using a hyperbolic discount rate. The results show that in the current situation, gas exports do not maximize social welfare, but by expanding Iran's natural gas production, exports will lead to maximizing social welfare.

Keywords: Natural Gas; Optimal Allocation; Hyperbolic Discounting; Iran. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
ftp://80.66.179.253/eut/journl/20201-4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eut:journl:v:24:y:2020:i:1:p:75

Access Statistics for this article

Iranian Economic Review (IER) is currently edited by Dr.Hossien Abbasinejad

More articles in Iranian Economic Review (IER) from Faculty of Economics,University of Tehran.Tehran,Iran Contact information at EDIRC.
Bibliographic data for series maintained by [z.rahimalipour] ().