ali morad sharifi

Among energy carriers, electricity is a very basic factor for the global economy; To the extent that per capita electricity production and consumption indicators are used to determine the economic status of countries and their welfare level. The growth of electricity demand is affected by factors such as gross domestic product, the price of energy carriers, temperature, population growth, the development of energy-intensive industries, structural changes in the economy, and improving efficiency. Responding to the growth of demand can lead to the development of the electricity supply sector in order to meet this demand. On the one hand, governments are facing financial limitations in investing and developing electricity supply, and on the other hand, some countries are facing surplus electricity generation due to limited domestic demand in some days of the year. So, creating a power pool is necessary to meet the demand and sell the excess electricity produced (Bhattacharyya, 2019).It should be noted that the actual progress of power pool is different among countries according to the potential of electricity production, its production cost and the price of electricity, so the examination of these observations has important consequences for the development of power pool between the countries of Iran, Türkiye and Iraq.Electricity supply in the countries of Iran, Türkiye and Iraq is made from fossil fuel, electric and renewable power plants, and most of the sources of electricity production in the studied countries are fossil fuels. The production of electricity from electric power plants is affected by climate changes, so that in recent droughts it has caused blackouts during peak summer hours in these countries. Therefore, by connecting the power pool between these three countries, the blackout rate can be reduced. Also, examining the minimum cost of the power pool between the three countries of Iran, Türkiye and Iraq, taking into account the cost of subsidized fuel in all three countries, and comparing to the minimum cost of the electricity network of all three countries without forming power pool between them is the innovation of this paper.Due to the lack of integrated electricity market between the countries of Iran, Türkiye and Iraq, for the economic modeling of electricity market integration, optimization method using past information and with the help of GAMS software, it is possible to determine how the electricity market is integrated.

The regional electricity market is modeled based on short-term and long-term approaches. Cost minimization techniques are usually used. In the short-term approach, there will be no capacity increase in the planning horizon. The length of the short term can be chosen from a few hours to a year. By using short-term modeling, it is possible to evaluate the profitability of the developing electricity trade between the countries under study in current conditions without changes in their production capacity.

1- For the development of the international market in the country, new laws in the electricity sector and laws related to the export and import of electricity should be developed, and the criteria for granting licenses to the domestic private sector or foreign companies to establish commercial and export electricity companies in the country should be determined. This process was accelerated. 2- through joint investment with neighboring countries for constructing new transmission lines and border power plants and the joint exploitation of these power plants, due to the difference in peak times of electricity consumption in Iran and neighboring countries, electricity exchange is possible in the long term. Currently, Iran's electricity export and import program with neighboring countries is carried out in the form of annual agreements, but long-term joint investment projects are very effective in stabilizing international electricity trade programs. 3- An auction system should be established in the electricity market so that by creating databases, it is possible to get information on the latest information on the sale and export price of electricity between exporting and importing countries and electricity companies. Then, using the auction system, determined the minimum selling price for electricity export and the maximum price offered by the buyers and proceeded to sell electricity. 4- Establishing power pool between the countries of the region can lead to the formation of the international electricity market in the Middle East and its electricity exchange with Europe and North Africa. In the power pool, it is possible to buy and sell electricity on a daily basis and for shorter times during the day, and the price of electricity is different at any time. In power pool, each country can act as a wholesaler, and after meeting local and regional needs, it exchanges electricity with other wholesale electricity markets. 5- An optimal price based on LRMC method should be used as the base price in electricity marketing and bargaining in the market to determine the final price.

In this article, an economic energy model was presented for the countries of Iran, Türkiye and Iraq. In this study, the short-term electricity exchange network model between the countries of Iran and its western neighbors (Türkiye and Iraq) is presented. This model is designed to minimize the power pool between Iran, Türkiye and Iraq.1- The cost of fuel has an effect on the minimum short-term cost of the power pool. Using the international fuel cost for the power plants of the three countries of Iran, Türkiye, and Iraq causes an increase in the minimum cost of the power pool. 2- The effect of transmission line losses on the total production of thermal and electric hydroelectric power plants in Iran, Türkiye and Iraq causes the increase in production of thermal power plants in Iran and Iraq, but changes the production of thermal power plants in Türkiye. With the increase in the loss factor of the transmission lines between zero and one, the output of Türkiye's electric power plant increases, but the output of Iran's and Iraq's electric power plants does not change. The optimal production of thermal and electric power plants in the countries of Iran, Türkiye and Iraq and the optimal electricity export and import and the amount of unmet electricity demand of these countries have been analyzed. 3- The graphs that present the electricity production of thermal and hydroelectric power plants in 2019 in the countries of Iran, Türkiye and Iraq, compared to the optimal values of thermal and hydroelectric power plants obtained from the model show that using the power pool, the production of electricity in the thermal power plants of Iran and Iraq will decrease, and by joining this power pool, the production of Türkiye will become zero, and the amount of electricity produced by the hydroelectric power plants of all three countries in this power pool should increase. It causes cost reduction in mentioned countries because it reduces the cost of operating thermal power plants in countries, so they can supply cheaper electricity. Also, the optimal amount of electricity transmission between countries shows the export and import of electricity between countries should increase. 4- With the joining of the countries of Iran, Türkiye and Iraq to the short-term power pool, there will be no unmet electricity demand in them. 5- the capacity values of the existing transmission lines between the three countries of Iran, Türkiye and Iraq, which are presented in Table 7, and the electricity export and import between Iran and Türkiye in 2019 in Table 6, compared to the optimal values of the model in Table 17 shows that exchange of electricity should be done according to this capacity, i.e. 450 megawatts between Iran and Türkiye. Also, the electricity export from Iran to Iraq should be increased and electricity import from Iraq to Iran should be done according to the capacity of the existing electricity transmission lines between Iraq and Iran, i.e. 1200 megawatts.According to the hypotheses of this research, which state that the power pool between the countries of Iran, Türkiye and Iraq will create benefits in the short term, and the power pool will reduce the operating costs of power plants in the studied countries in the short term, it can be seen that these hypotheses are confirmed because the results of the model show that this power pool in the short term causes no unmet electricity demand in sample countries, and also increases the export and import of electricity between the countries. As a result, within the power pool, Iran, Türkiye, and Iraq will reduce the production of thermal power plants and increase the production of hydroelectric power plants, which will reduce the cost of fuel and operating costs of power plants, and also reduce environmental pollutants. This power pool also reduces the consumption of fossil fuels used by power plants, which creates benefits for the countries studied in this research.

Inflation is one of the consequences and costs of economic populism. Since symbols of populism have appeared in Iran in recent decades,two goals have been pursued in this research. First, based on the literature on populism, economic populism and oil populism, 8 incides for oil populism have been proposed. The results of the calculations of the 8 incides for Iran during the period of 19978-2018 show that for the period of the ninth and tenth governments, the years 2005-2013, these 8 indicators have the highest values. To calculate a single index of oil populism, the geometric mean of 8 suggested indices was calculated during the mentioned period and it was found that this index has the highest value in 2009 compared to the length of the studied period. After clarifying this matter, the synthetic control method has been used to evaluate the populist policies in Iran on the inflation process during the period of 2005-2013. Iran was selected as the country under treatment or policy and 10 oil exporting country as the control group. The results of the research show that the real and simulated trends of Iran's inflation rate from 2005 onwards have a significant difference.. ‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬ ‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Decreased growth and economic stagnation are among the consequences and costs of economic populism. Petro-populism is a phenomenon that appears in governments that rely on oil. Such governments try to attract the support of the masses by relying on oil income. Considering that symbols of populism have appeared in Iran in recent decades, two goals have been pursued in this research. First, based on the literature on populism, economic populism, and Petro-populism, eight indicators for oil populism have been proposed. The results of the calculations of the eight indicators for Iran during the period of 1978-2018 show that for the period of the ninth and tenth governments (2005-2013), the six suggested indicators of  Petro-populism have the highest values. To calculate the general petro-populism index, the geometric mean of the above eight indices was proposed and calculated during the mentioned period. The findings of the research show that in 2009, this index has the highest value compared to the length of the studied period. After it became clear that the rule of economic populism was more obvious in Iran during the years 2005-2013, the synthetic control method was used to evaluate the populist policies on Iran's economic growth during the mentioned period. Iran was selected as the country under treatment or policy and 13 oil exporting countries as the control group. The results of the research show that the real and simulated trends of Iran's economic growth from 2005 onwards have a significant difference

Due to the increasing growth rate of electricity demand as well as relevant supply challenges, the economic issues of power systems have been considered by governments and energy experts to achieve further efficient resources allocation. Based on an approach of a dynamic system, the aim of this study has been to modelling the regional integration of electricity markets among the selected ECO member countries (including Iran, Turkey, Azerbaijan, Pakistan and Afghanistan) in order to maximize the stability of electricity supply. Accordingly, the required data have been applied during the period of 1980-2019. In this respect, two scenarios, namely a scenario of self-sufficiency of electricity (implying national electricity market) and a scenario of free regional market (implying regional integration market) have been conducted respectively, by specifying and estimating a Structural time series model, to simulate the trade flows of electricity in the selected ECO country members by 2030. The simulated results have indicated that Iran has had the marginal storage of more than one and the lowest price among the countries, while it has the largest volumes of electricity exports. Afghanistan with the marginal storage of less than one among the regional countries has had the lowest volumes of electricity Imports. In addition, the empirical results have revealed the fact that the electricity price has been decreasing as a result of a decrease in the electricity production costs. Consequently, the paper findings imply that uncertainty in the electricity supply can be reduced through implementing an integrated regional electricity market among the ECO members.

Today, global warming is one of the most important human concerns in the fields of economy, energy and environment. The most important element in global warming is the burning fossil fuels that release the greenhouse gases including CO2. The researches by the Intergovernmental Panel on Climate Change show that global warming will rise more than 2 degrees centigrade by the end of the century with respect to the pre-industrial era, if no effort is made to reduce CO2 emissions. Since the MENA region is one of the most vulnerable regions in the world due to climate change, so the main purpose of this study is to assess the effects of climate change on the economic variables in MENA region until 2105. For this purpose RICE model is used which is based on the computational general equilibrium model. The results indicate that the global average temperature will rise to 4.49 degrees centigrade until 2105 year in comparison to the pre-industrial era, if no policy is implemented to prevent rising temperatures. The trend of regional GDP and consumption are similar and will increasingly move. In the long-run, the capital accumulation will increase in the upper-middle income, the lower-middle income and the high income countries, respectively; while employment will increase in the lower-middle income, the upper-middle income and the high income countries, respectively. Environmental damage is the most in the high income countries in comparison to the other groups in MENA region.

Iran has faced oil and banking sanctions since 2012. Following the sanctions and instability of the exchange rates, the Rial has sharply lost its value. Rising economic unrest has widened the gap between the official exchange rate and parallel market rate. However, the depreciation of Iran’s Rial does not show a uniform trend, and the decline path has been complicated. We know that sanctions against Iran have created new expectations, concerns, and attention. Google Trends has provided an analytic tool for measuring and monitoring people’s expectations based on their Internet search data. This study attempted to analyze and model the exchange rate trends in Iran using sanctions-related expectations extracted from Google Trends. The Google search index (GSI) of the sanctions demonstrated the agent’s expectations. Monthly data and the autoregressive distributed lag (ARDL) method were used for estimation. The results indicated a significant and positive impact of GSI on the unofficial exchange rate (UER) and just a positive impact on the real unofficial exchange rate (RUER). We can conclude that the effects of sanctions appear partly through changes in people’s expectations that can be extracted using GSI. Moreover, the difference in inflation showed a significant positive effect on the market exchange rate in Iran. Thus, an improvement in the expectations through reducing the international tensions and a perspective shift can strengthen the Rial exchange rate. Moreover, the policymaker can control the volatility and depreciation of the exchange rates in Iran by restricting the M2 growth through an appropriate long-run monetary policy.

The Earth's temperature has climbed by 0.7 degrees Celsius (°C) during the last 100 years, and the worldwide average temperature is expected to rise between 1.8 and 6.4 degrees °C by 2100. Climate change, particularly rising temperatures, according to IPCC , the Middle East and North Africa (MENA) area will face challenges throughout the twenty-first century. As a result, the study's aims are to evaluate the impact of policies which eliminate or targetize fossil fuel subsidies in order to reduce global warming, as well as the impact of these policies on economic variables (GDP, consumption, capital accumulation, employment, and environmental impact) in the MENA until 2100. For this purpose, a Dynamic Regional Integrated Climate-Economy Model (RICE) is utilized to do this. The findings suggest that in the long run, if no strategy to limit temperature rise is enacted and carbon subsidies persist, the average world temperature would rise by 4.74 degrees °C, while an optimal policy based on fossil fuel taxation will increase the average global temperature by 4.49 °C, and a policy reforming fossil fuel subsidies will increase the average global temperature by 4.24 °C. Generally, carbon tax measures in the MENA area will lower average world temperature increase by 0.5°C compared to other scenarios.

Propensity score matching is extensively utilized in estimating the effects of policy interventions and programs for data observations. This method compares two treatment and control groups to make statistical inferences about the significance of the effects of these policies on target variables. Therefore, when using propensity score matching, it is significant to obtain the standard error to estimate the treatment effect. The precise estimations of variance and standard deviation facilitate more efficient statistical testing and more accurate confidence intervals. However, there is no agreement in the literature on the estimation method of standard error; some methods rely on resampling, while others do not. This study compares these methods using Monte Carlo simulation and calculating the Mean Squared Errors (MSE) of these estimators. Our results indicate that Jackknife and standard methods are superior to Abadie and Imbens (2006) bootstrap, and subsampling ones in terms of accuracy. Finally, reviewing Tayyebi et al. (2019) indicated that different methods of estimating variance in the matching estimator led to different statistical inferences in terms of statistical significance.

According to James Heckman, human development is economic development. This means that nurturing flourish and capable human beings through the channel of fostering valuable skills under the influence of various factors (environment, school, and parental investment) lead to reducing inequality, increasing economic productivity, and production capacity. The stock of these skills in adulthood leads to the various outcomes that Heckman and Corbin (2016) call human flourishing. Therefore, an index called the Human Flourishing Index (HFI) is proposed and calculated for the first time in this study. Accordingly, the present study establishes a link between Heckman's theory and efficiency analysis by inserting HFI as a proxy of human capital in the production function, and by using the Stochastic Frontier Analysis (SFA) model of Battese and Coelli (1993; 1995); examines the technical efficiency of the production of the selected countries group and identifies the factors affecting it in the period of 2003-2017. Estimation of a frontier production function and the inefficiency effects model indicate a positive and significant effect of HFI on the per capita production of the selected countries group and four factors of official entrance age to pre-primary education, pupil-teacher ratio (pre-primary), percentage of enrolment in primary education in private institutions and gross enrolment ratio (secondary) on the technical efficiency of production. The results also indicate the increasing trend of HFI and technical efficiency of the selected countries group during the period.

Crude oil is the most traded commodity in the world and its market has great influences on the global economy and macroeconomic activities. The present study seeks to analyze Iran's policy for oil production and export within the framework of an intra-OPEC bargaining game.  This analysis helps to review Iran’s oil policy and to propose an appropriate strategy in the new circumstances. The analysis of strategic relations shows that OPEC members can be divided into two groups of saver and spender countries. This categorization is due to economic, demographic, and petroleum differences among OPEC countries. OPEC members are different in terms of discount rates, impatience, and the urgent need for oil revenues too. The authors of this study have tried to model the relationship between oil quotas/production and demographic, economic, and oil variables based on the Intra-OPEC bargaining game. The model estimated for the period 2001-2019. The results indicated a strong and significant relationship between the ratio of oil production to oil reserves and demographic, economic, and oil variables. Bargaining between the two groups can largely determine the behaviors of OPEC and its members. The model estimation suggested that the oil market faces a tendency towards faster production and export in response to the shift in world oil market outlook. The results suggest that Iran's oil production capacity, the market share of Iran and recovery rates should be upgraded. Finally, the current role of Iran in OPEC does not fit into its economic needs and should be reviewed based on the above results. The study indicated that the inherent heterogeneity in OPEC still helps Iran plan to achieve its historic quota and position in OPEC.
JEL Classification: C07, D74, L13, L16.

During the past few decades, governments around the world have been allowing market forces to play an increasing role in the electricity sector. The transition from the monopoly framework has led to the restructuring of the electricity market in leading economies to achieve greater competition and efficiency. Government of Iran also has been implemented a daily market for the competition of power plants in electricity sales based on supply bidding mechanism in order to guarantee reliability and efficiency. The basis of this mechanism is the Klemperer and Meyer (1989) study. This paper first introduces the supply bidding model of Holmberg (2009). Then current bidding of selected power plant in the Iranian electricity market compare with the optimal bidding. For this purpose, the demand uncertainty structure is estimated at the specified days in different seasons. Finally the optimal bids of Holmberg model are estimated. The results indicate that supply bids of the selected public power plant are suboptimal and can be improved by using the model. Alternative payment approach called uniform price can also be replaced to compare two mechanisms.

The statistics show that the energy intensity in Iran is very unfavorable and its trend is alarming. There are two basic strategies to reduce energy intensity; the first strategy is to modify the relative prices of energy, especially through the energy taxation. The second strategy is to promote energy-saving technologies through research and development as a non-price strategy. The purpose of this study is simulation of a model for economics of Iran, for comparing the intensity of energy efficiency improvement through the energy taxation policy and the R&D subsidies policy. For this purpose a three-part general equilibrium model has been used. The period of implementation of the model has been considered as a 15-year time span since 2011. At the same time, the effect of policies analyzed on the labor demand as a production factor. The results show that a 40% energy tax improves energy efficiency by 52.74%, while a gentle R&D subsidy (20%), improve energy efficiency by 54.69%. So R&D subsidy policy for technical change is more effective than the tax policy in improving energy efficiency in Iran.

Sustainable development is an essential goal for developing countries, which can be measured by various indices. This paper computes genuine saving for the Iranian economy based on national accounting and examines the relationship between genuine saving and present value of discounted consumption during 1960-2012. The results indicate that genuine saving is mostly negative over the period under study and there is also a negative relationship between genuine saving (as a measure for the nation wealth) and the change in the present value of consumption (as a national welfare index). According to Hartwick’s rule, these findings mean that welfare reduction is a possible outcome in the future.

In this paper have been introduced an approach which refer to as the attribution analysis of index to the IDA and energy studies. This approach extends the methodology of IDA by quantifying the contribution of each individual attributes to the overall percent change of factors, such as the real energy intensity. As has been shown in this study, the method can be used as a tool to assess and monitoring changes of industrial energy efficiency in greater depth compared to what has been reported in the literature. It can similarly apply the technique to analyze the structural change index in a symmetrical way.
In this study have been applied the proposed method to the real energy intensity index in the multiplicative Logarithmic Mean Divisia Index ­(M-LMDI)­ approach,a major IDA technique. Since the M-LMDI is based on geometric mean type indices and chain computation,we need some appropriate method to cope with the difficulties that arise.
This study is based on a standard model of two factors such that the aggregate energy intensity index is the product of the real energy intensity index and the structural change index. The proposed attribution analysis, however, is not restricted to the number of factors. It can be similarly employed in other IDA studies, such as energy-related carbon dioxide emissions where the number of factors is often more than two. This approach can be defined as long as these factors are expressed in either geometric mean or arithmetic mean indices.
This study present a numerical illustration of the proposed method using the energy consumption and real value added data of the Iranian manufacturing industry.

Rent-seeking in the trade sector is an outcome of restrictions imposed on tariffs and import quotas by a government. In an effort to acquire more privilege in foreign trade, labor allocates a part of its time-effort to rent-seeking activity, while cutting down on production work. Given the importance of rent-seeking activity due to restrictions imposed by the government in the Iranian economy, this paper has attempted to calculate the size of rent-seeking activity in the foreign trade sector of the Iranian economy. Hence, a version of the DSGE model has been specified and the related parameters have been estimated in order to calculate the rent-seeking rate. We have applied quarterly data from 1998:1 to 2015:4 for Iran’s trade sector, to obtain the empirical results through calibrating the specified DSGE model. The results have indicated that rent-seeking of Iran’s trade sectors amounted to 0.45, which looks considerably high. Moreover, labor has shared 24 % of its effort time to rent-seeking activity and 76 % to ordinary work.

The purpose of this paper is to design a Dynamic Stochastic General Equilibriummodel to examine the effect of trade rent-seeking on labor behavior in Iran's economy. The empirical results of the analysis of Impulse Response Functions indicate that, with the positive shock of the trade revenue, the trade rent-seeking rate has increased, and the labors has reduced its productive activity. In order to examine more precisely the welfare cost of rent-seeking, by Lucas's compensated variation pattern has been shown to decrease a 10% in rent-seeking rate it is increased households welfare benefit by 6%. Therefore, it is suggested that the economic policymaker with the import tariff setting based on the economic and society’s livelihood needs restricts the bargaining by the owners of the profit.

The purpose of this paper is design a model for the capacity development of bioethanol refineries in Iran. Due to the variable weather condition, there is the uncertainty in the amount of raw materials, thus we suggest a deterministic programming model Based on probabilities for capacity development. The deterministic linear programming model is represented a signal period planning framework to minimize the expected costs. A model which suggest in this paper is for minimized the fuel supply costs (gasoline and bioethanol) for specify the amount and location of capacity development. The results of this model show that reduce the costs of supplier fuel about 6 billion rials.

The main purpose of this study is to analyze the stability of OPEC, based on approach of Danielsen's sacrifice ratio and the impact of Iran economic sanctions. For this purpose two concepts called the reserves sacrifice ratio and the capacity sacrifice ratio on Danielsen model framework have been used for investigating the stability of OPEC. Relationship between sacrifice ratios and variables such as population, gross domestic product (GDP), production and oil production capacities of all members of OPEC have been reviewed and analyzed. Iran sanctions as an important factor influencing on amount of sacrifice ratios and totally OPEC stability have been studied. Period of study has been chosen from 2000 to 2014. The results of this study show that during the examined period, there is a meaningful and negative correlation between population and sacrifice ratios. There is a meaningful and positive correlation between oil reserves and sacrifice ratio too. OPEC countries with large oil reserves have a tendency to restrict extraction of crude oil reserves. There is a meaningful and positive correlation between Iran economic sanctions and sacrifice ratio. Iran's oil production capacity has been reduced due to sanctions against Iran and consequently sacrifice ratios of reserves and oil capacities have been increased. According to results of this research there is no evidence to suggest OPEC collapse. As a result of this study, OPEC still considered a stable organization.

Energy carrier’s subsidization has placed a significant pressure on government budget in Iran; thus، energy price increase is performed in order to ameliorate this case. One of the main challenges that policymakers need to consider is the impact of energy prices increase on the labor market; especially، when the national unemployment rate is high. This paper utilizes a computable general equilibrium model based on a Micro Consistent Matrix for 2006 in order to evaluate the impact of energy price increase on the Iranian labor market during 2006. The empirical results are based on two scenarios: Baseline and FOB price increase scenarios. They show that the activity level and demand for labor in “crude oil، natural gas، and coal” as well as “other services” sectors will increase in short-run while the energy carriers’ prices increase. However، in long-run، the labor increment will be lower. Furthermore، the model results indicate that in short-run، the activity level and demand for labor in the other sectors will decrease. On the other hand، the policy will result in a larger decrement in the activity level and demand for labor in these sectors in long-run.

At the beginning of the 3rd AD millennium، industrially and economically fundamental changes have taken place in most developed and/or developing countries. Economically، concerning the perspective ahead of these communities، one of the most important issues occupying all of their authorities’ minds is energy provision. Meanwhile، optimization of energy systems and use of new energies as the replacement for fossil ones is deemed important. In this study hybrid system optimization was made using the genetic algorithm method، including the energies wind، sun، diesel، and battery. The results showed that in order to minimize the costs of using the hybrid system only the one containing photovoltaic and battery should be used due to high radiation potential.

Factor demand behavior such as energy demand has an important role in the economic analysis. This issue is a major concern in the developing countries (e. g. Iran) which are benefited from vast energy resources. In this paper، the third generation of factor demand models is used to analyze the behavior of capital adjustment in the Iranian manufacturing industries. The dataset covers the two-digit International Standard of Industrial Classification (ISIC) during 1995-2007. The Generalized Leontief functional form has been chosen as an empirical model and estimated by Full Information Maximum Likelihood (FIML) method. The findings indicate that capital، electricity، and other energy carriers are complements in the manufacturing industries and the speed of adjustment for capital input is very low. Also، labor is an inferior input in the Iranian manufacturing industries.

In most of the developing countries، particularly in Asian countries، the initial step of electricity industry restructuring has begun by spot market design. In addition، electricity industry، all around the world، is approaching competitive markets. Meanwhile there are many unanswered questions including deregulation mechanism. In this new framework، producers are considered as private companies which are responsible for their decisions. This paper presents a regional model for the deregulated electricity market where producers trade the electricity with distribution utilities based on spot prices. A mathematical programming model is used to calculate an appropriate base for electricity market transactions. The model has been implemented while different power plants produce electricity and demand fluctuates permanently. The model minimizes total variable costs subject to generation and demand constrains. Isfahan electricity market is considered as empirical evidence. To run the model، General Algebraic Modeling System (GAMS) software has been used.

Energy is aconsidered as one of the major inputs of production along with other inputs such as labor and capital that contribute to the production process. Moreover, most energy sources have fossil origin and are irreversible, so on the one hand, the basic features of the finitude of other energy inputs to production are distinct and the necessity of energy saving and the possibility of substituting them with the renewable forms are self-evident. Industrial energy demand analysis has always been one of the leading fields of research in economics. This issue is more critical in the case of developing countries, especially those with transitional experiences. In this paper, third generation of dynamic factor demand models for the Iranian manufacturing industries is estimated to analyze the speed of adjustment in factor demands. Using the quadratic functional form, this result was the elimination of energy subsidies in the short term which has a great impact on the industry to reduce energy demand. But, it is believed that in the long run, the intensity of this effect will be diminished. Furthermore, the results show that the speed of adjustment in capital stock of factory industry is very low.

Industrial energy demand analysis has always been one of the leading fields of research in economics. This issue is more critical in the case of developing countries especially those with transition experiences. In this paper, third generation of dynamic factor demand models for the Iranian manufacturing industries is estimated to analyze the speed of adjustment in factor demands. Data which is used in this study is an Iranian industrial plant based on two-digit international classification code during 1374-1386. The translog functional form is used as model specification. The main findings are the complementary relation between energy carriers, electricity, and capital and low adjustment speed of capital stock. In Iranian manufacturing industries, demand for energy carriers and capital, with expansion of manufacturing activities and technological change has increased, while the demand for labor has decreased.

One of the specific aspects of our time is the existence of World Trade Organization as an important international center. This organization regulates the commercial laws among the countries، and tries to provide a suitable environment for trade by eliminating the subsidies using protection policies and making a better condition for competition. In order to achieve this objective، the economic sectors of countries should move towards the production of commodities which show the comparative advantages. In order to analyze the economic potential of Iran، those fields which have comparative advantage should be recognized. One of the driving factors of comparative advantage for the Iranian petrochemical industry is oil and gas resources availability. In this research، the competitive capability، comparative advantage، as well as protection policies of selected petrochemical productions are analyzed by using Policy Analysis Matrix (PAM method).