Investigating Carbon Reduction and Growth Policies in Iran by Input -Output Analysis Approach

This paper investigates carbon mitigation policies and economic growth in Iran using the input-output analysis approach. The input-output table was first updated for 2015. Using the data in the Iranian Energy Balance Sheet and the Iranian Statistics of Industrial workshops, the CO2 consumption and its emission were calculated. We have then examined the policies for carbon reduction and economic growth in Iran. The results show that food products, base metals and residential buildings are ranked, respectively, as the first, second and third contributors in energy consumption increase as well as the increase in CO2 emission towards enhancing the rate of economic growth. The results also indicate that in the sectors of marine transport services, wholesale and retail services, and public services energy consumption should be reduced for the 10% increase in economic growth. It is concluded that alongside economic growth the fuel consumption and carbon dioxide emissions will increase, hence necessitating the use of alternative substitutable energies in order to reduce the pollution.