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

Document Type : Research Paper

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Abstract

The aim of this study was to investigate the environmental effects of price increasing of energy carriers. In this regard, the Environmental Social Accounting Matrix for Iran has been prepared for the year 2006. Price changes due to 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 the 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, the policy of increasing prices of energy carriers reduced environmental pollution by 5.83 percent.

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References

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Iranian Journal of Agricultural Economics and Development Research
Volume 47, Issue 1
April 2016
Pages 127-139

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