The power sector relations to other economic sectors: An input-output analysis

This paper investigates the power sector status among other economic sectors and also the interrelationship between this sector and other sectors using an input-output analysis. The Hirschman - Rasmussen forward and backward linkages index shows that among 64 sectors, the rank of power sector in demand for the output of other sectors and the supply of other sectors input is 27 and 17 respectively. The power sector has the highest rank among other energy sectors from forward linkages point of view and has the 4th rank after coal, gasoline and gasoil in backward linkages point of view. Steal, metal spar, cement, plaster and lime, steel and ironic products and water industries have the highest responsiveness from the growth in power sector value added while land carriage, financial services, insurance and banking, railroads, forestation and educational services industries have the minimum responsiveness from the electricity sector growth. An increase in the power sector value added has the most effect on the output of industrial sector. The power sector also has the highest output multiplier among other energy sectors so that a 1 Rial increase in the final demand for this energy carrier can increase the output of the whole sectors by 2 Rials. Gasoil, kerosene and gasoline have the highest output multiplier after power sector; however there is not a considerable difference between the output multiplier of various energy sectors.