Environmental effects of price increasing of energy carriers: Construction of Environmental Social Accounting Matrix for Iran

The aim of this study is investigate the environmental effects of price increasing of energy carriers. In this regard, the Environmental Social Accounting Matrix for Iran has been prepared for year 2006. Price changes due to the rising of price increasing of energy carriers calculated using price pattern of Social Accounting Matrix and then, emissions were estimated using the ESAM’s multipliers. Results showed that, cost of production and the consumer’s price index has increased with increasing price of energy carriers. The most cost increasing is in energy sector by 763/84%. It has reduced energy demand. Services, manufacturing and mining sectors has the greatest decline in income and demand for energy. Given that energy consumption is one of the most important sources of environmental pollution, rising cost of energy reduced emissions and environmental pollution. So that the policy of increasing prices of energy carriers reduced environmental pollution by 5.83 percent.