Comparative Analysis of Oil and Gas-Based Energy Taxation and R&D Subsidies on Energy Efficiency in Iran

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Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:
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.
Language:
Persian
Published:
Quarterly Journal of Applied Theories of Economics, Volume:5 Issue: 2, 2018
Pages:
103 to 126
https://magiran.com/p1878126