Evaluating impact Demand management policies (price and non price) on Energy conservation in IRAN using Energy system model

Energy as a fundamental factor of production processes an important place in the economics system so that providing secured energy is one of the most important problem for attaining sustained growth and development. Non consistency of domestic national product growth with that of energy consumption growth in the country shows that energy productivity is reduced. Therefore for purposes of energy efficiency and energy conservation you meet to apply appropriate policies for the country. Implementation of demand management, policy in line with rationalization of energy consumption, is possible in the content of price and or non price policy or combination of there two. By using an energy system model in the content of various scenario a suitable policy was chosen, and the result optimal showed that potential for conservation in the case of using price scenario was much higher in combination of price policy. But using a combination of price policy(moving towards prices with marginal cost) and non price (moving towards using of legal instruments, standards, regulations and….) can be a more suitable policy package for the country. I fact evaluation results of policies in the content of five scenarios, showed this fundamental finding that by implementing a combination of price policy and non price policy such as setting standards, passing laws and applying regulations in line with increases in productivity and improving technical efficiencies of energy consuming facilities, the country can benefit more of the results of demand management policies.