Causes and Consequences of Reforming in Electricity Production and Consumption Pattern on Promoting Sustainable Development in Iran; An Economic Analysis
Dr. Ali Mohammadipour
Economics Consultant (with Ph.D. in Economic Sciences), Department of Energy, Iranian Association for Energy Economies, zip: 19167, Tehran, Iran. (Corresponding author - Email: Dr.ali.mohammadipour@gmail.com, for CV please visit: http://dralimohammadipour.blog.ir)
Preliminary version - March 2020
نسخه اولیه از مقاله علمی پژوهشی حاضر طی اواخر مارچ سال 2020 تکمیل و برای داوری به ژورنال Nature Environment and Pollution Technology ارسال گردید. ژورنال مذکور در کشور هندوستان واقع گردیده و ضریب تاثیر ژورنال در لیست ISI سال 2018، 2/2 و در لیست Scopus 2020 دارای امتیاز Cite Score 0/6 می باشد. مقاله ارسالی بعد از اعمال اصلاحات درخواستی داوران ژورنال و پرداخت هزینه های چاپ و انتشار مقاله، نهایتاً در 19 تیر ماه 1399 بطور رسمی مورد پذیرش واقع گردید و نهایتاً بعد از صفحه آرایی در شماره 2، سال بیستم، ماه جون سال 2021 میلادی صفحات 517 الی 531 در همین فصلنامه به چاپ رسید.
Abstract
In line with the 2015 Paris Agreement, the present study examines the efficiency of Iran's electricity industry compared to world standards. In 2018, Iran is ranked second in the world in terms of direct subsidies to the electricity industry, while subsidies for fossil fuels as the main feedstock for power plants are also higher. The results of the study indicate that despite the privatization of the electric industry since 2005, centralized economic management and the provision of extensive direct and indirect subsidies have led to the expansion of inefficiencies in the production and consumption of electricity. Lack of cost-based pricing is a major factor in the production of inefficient units and determination of electricity prices at very low levels (as a result of subsidies) is the main reason for the inefficient use of electricity in Iran. The undeniable role of fossil fuels in energy production has stabilized Iran's second-largest power plant sector in CO2 emissions in the Middle East, and as a consequence of no noticeable changes in the energy production process, the carbon intensity index and carbon intensity for electricity consumption, have fluctuated slightly. However, the energy intensity and energy intensity for electricity consumption, unlike the developed countries, have shown an upward trend, indicating a decline in energy and electrical energy efficiency in the Iranian economy. The index of fundamental reforms in electricity production, exactly the reverse of the successes in Iceland, Switzerland, Norway, Sweden and Luxembourg, is less than 8%, which is against sustainable development goals. It is crucial to take advantage of countries' successful experiences in electricity price reform and to address the four key components proposed.
JEL codes: L52, Q56, P51.
Keywords: Power Industry, CO2 Emissions, The index of Fundamental Reforms in Electricity Production, The Carbon Intensity Index and The Energy Intensity Index.