Volume 17, Issue 3 (2017)                   QJER 2017, 17(3): 131-157 | Back to browse issues page

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Taheri E, sadeghi H, assari arani A. Effect of Increases in Energy Carriers' Prices on the Degradation Cost of Air Pollutants in Iran: Computable General Equilibrium Approach. QJER. 2017; 17 (3) :131-157
URL: http://ecor.modares.ac.ir/article-18-3555-en.html
1- Ph.D. Candidate in Economics, Tarbiat Modares University
2- Associate Professor of Economics, Faculty of Management and Economics, Tarbiat Modares University
3- Faculty Member, Faculty of Management and Economics, Tarbiat Modares University
Abstract:   (7808 Views)
The ecosystem is a fundamental pillar of human life, which has been changed due to the progress and development of the world. The emission of air pollutants is a key factor in environmental degradation. Air pollutants impose the so-called "degradation costs" on different sectors, which these costs are not included in official calculations. Consumption of energy carriers is the main cause of air pollutants emissions in Iran. Therefore, this research seeks to examine the degradation costs of air pollutants emitted by the use of energy carriers in Iran. One way to reduce the emissions of air pollutants and their degradation costs is to impose tax on the consumption of energy carriers. This study considers a scenario for raising the price of energy carriers to the level of FOB price of Persian Gulf. For this purpose, the standard computable general equilibrium model of Lofgren et al () is used. The statistical basis of the CGE model is the 2006 social accounting matrix (SAM). The statistical data on energy consumption and emissions of air pollutants are derived from the energy balance sheets over the period 2006-2012. In addition, economic sectors are divided into 25 sections according to the ISIC classification. Degradation cost in the baseline scenario is equivalent of 14.43% of GDP (at constant prices) in 2006, which by applying the scenario for increasing the price of energy carriers, this cost declines by 23% and amounts to 10 percent of GDP. Results also reveal that the road transportation and electricity sectors experience the greatest reductions in degradation cost.
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Article Type: Research Paper | Subject: Economics
Received: 2015/10/16 | Accepted: 2016/12/14 | Published: 2017/09/23

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