ijcrb.webs.com DECEMBER 2011 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 8 The Impact of Targeted Subsides of Electricity in the Iranian Manufacturing Industries Karim Azarbaijani, PHD. Assistant Professor of energy economic Department of economic, University of Isfahan, Hezarjerib Street, Isfahan, Iran Alimorad Sharifi,PHD Assistant Professor of input-output model Department of economic, University of Isfahan, Hezarjerib Street, Isfahan, Iran Azam Masoudi (corresponding author) M.A Candidate Department of economic, University of Isfahan, Hezarjerib Street, Isfahan, Iran Abstract The subsidies, in addition to its effectiveness on the domestic energy sector consumption, most industries will be affected. Industries because of the major consumers of energy carriers are if with the targeted subsidies, the price of these carriers for industry increase, without a doubt will affect their production and the price of their products. Electricity As one of the major carriers of energy in countries sustainable development has always been interested in and with developing manufacturing industries has been increasingly growing demand for this energy carrier. According to high share of industrial sector energy consumption in the country and considering of the importance investigation dependence of industrial products to this energy, the main objective of this study is investing the effect of increasing electricity price on some manufacturing industries. The subsidies will be discussed in the review and the input-output model for predict the price in industry will be introduced. In this model be used input- output table on 1385. Keywords: Subsidies, input – output table, industry. 1. Introduction Undoubtedly energy is one of the significant advantage inputs of production in the Iranian economy. There is abundant and inexpensive energy has led to some activities Justified by economic and financial results and developed. In creating these advantages, payment of subsidies is very important. One of the important tools that government support aimed at supplying the needs of individuals and groups who are not able to pay the real cost of energy, for the protection of consumers, producers, exports were to be paid. Subsidies, through changes in relative prices and Reduction relative price of subsidy commodities, affect the economy and then with prices Distortion prevent resource allocation. On the other hand the budget deficit and increasing of the social costs, effects on the national economy as a macro. With regard to this, this fundamental question Related to increasing of the prices of energy carriers are discussed that what effect of increasing of energy prices on the industry process is in Iran. COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1078 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2011 VOL 3, NO 8 Because of the energy flow in all economic sectors and all sectors of the economy are related to each other, so any changes in energy prices, impact the total economic and Considerable consequences are left. Electricity as one of the most important energy carriers in the sustainable development of countries have always been the case with population growth and economic growth, has been increasingly growing demand for this energy carrier. In countries like Iran, which exports oil and gas, energy, as a God-given resource is consumed and governments have left this national capital without calculating the actual price for the producers and the household. After The Implementation planning of targeted subsidies, prices of energy carriers (especially electricity) is increased very much that should investigate the effect of this prices increase on many different economic sectors including industry. In this study investigate the effect of increasing the electricity price on industry. Obviously, due to the complexity of relationships that exist in the industry, we can not consider all the consequences of price increases and can be calculated. However, the input-output method is including methods that can mostly take such relationships. General framework that be used in this study, So that the increase in energy prices is to increase the cost of parts produced and the price of products is increased, then the interface will increase the price of the parts produced by the. For this propose be use predict of price model in the input -output tables. Studies Renuka mahadevan & John Asafu-Adjaye ، (2007), Ikhupuleny Dubo، (2003), Hope & Singh ، (1995), Noel D.uri & Roy Boyd، (1997) , including foreign articles that have been done in the field of energy. Renuka mahadevan & John Asafu-Adjaye studied the relationship between energy consumption and real GDP growth in developing countries and have developed. They showed with the combined model with error correction use data to the period 1971 to 2002 that the developed issuer countries in the short term and long-term, a relationship of mutual causality between energy consumption and economic growth there. In developing Exporters countries, only energy consumption, economic growth in the short term it will affect. In importing countries, both developed and developing in short-term and long-term, a two-way causality relationship between energy consumption and economic growth is established. Finally, in the importing countries only in the developed countries is there a oneway causality between energy consumption to economic growth. Ikhupuleny Dubo in the study paid to the effects of subsidy on three factor: electricity, kerosene and kerosene as fuel wood (Complementary) .and It is concluded that the subsidies are useful and effective to Access poor families in a variety of energies, But because the same subsidies as public (not targeted) are paid and accrued to the energies that are less accessible to poor families is, Actually lose their efficiency and budget are just a heavy financial load. Hope and Singh in their research experience in six countries, Malaysia, Ghana ,Indonesia, Zimbabwe, Colombia and Turkey in the 1980s prices of petroleum products and electricity have increased. They investigated increasing the prices of energy carriers in the sectors of industry and households and its impact on the macro-economy sector. These researchers expressed impact of increasing of energy prices on industrial products depend on to the energy inputs in the production of alternative energy inputs and the producer’s ability to transfer energy costs to consumers. Noel D.uri & Roy Boyd In a paper paid to analyze the effects of increasing prices of gasoline and electricity in the Mexican economy. In December 1995 the Mexican government increased the price of gasoline and electricity in the process put our own programs, So those investigated consequences of Mexico's government act of using a general equilibrium model that consists of 13 manufacturing sectors, 14 consuming sectors, 4 household groups classified by the paying state income. Statistics are used, based on 1988 statistics, the closest year to develop a input-output matrix, And the general conclusion is that this price increase reduces consumption by households and producers, Production of products in the sectors of industries that are using these energies, reducing environmental Destructive effects and increase government receipts that can be part of it to repay foreign debt and the adjustment is applied. COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1079 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2011 VOL 3, NO 8 The internal articles can be noted Salimian, Kordbacheh, Sadeghi ,Shahdanive, Makaryzadeh (1388), Sharifi, Ghasemi and Sadeghi (1387), Fayzi(1387), tasdighi and Haidarpour (1387), ghaderi and estedlal (1378), sori and bakhtiyar (1377)are. Salimian and her Partners in their search predict electricity prices during the three scenarios proposed to increase the carrier’s price. The average price of electricity calculated in year 93 (year-end project) in the scenario of a 10 percent increase in wages is equal to 1315.08 rial that In addition to increasing of the prices of petroleum products may Shows reflect the increasing of electricity price because of increasing its costs? Also it is expressed that Implementation of subsidies-targeted plan affected by variables such as fuel and maintenance costs, the investment sector will be influenced. Finally, the prediction of cost per watt hours of electricity in a given scenario with regard to the effects of inflation on the price of electricity with the input- output model is shown. . Sharifi and colleagues (1387) using input- output tables paid to evaluate the effects of inflation resulting from the removal of energy subsidies. After introducing the input- output model in this study in the brief, some of the advantages and disadvantages to using this method are mentioned. They introduced three different scenarios (Scenario I: increased ten percent, the second scenario: increase of 35% and the third scenario: 65 percent increase in energy prices) and using the input-output model analysis Rate and how much impact each of these scenarios on the various economic sectors price. Based on the results of the three energy carrier, electricity higher percentage (approximately 87%) has created inflation. fayazi (1387) in his study using stationary analysis input- output and the central bank table in 1383 investigated the consequences of price liberalization of energy carriers on the government budget and household income deciles. Based on these findings, 100% price increase for all energy carriers increased by 8% in the consumer price index is released and the full cost carriers increased by 108% in the CPI is. This study has been studied the effects of these policies on the state budget and was found to increase the price of the carriers or the full price liberalization, the government budget deficit is reduced. These results have been obtained in circumstances that government compensate reduce the welfare of society with all the cash payments. Tasdughi and Haidarpour (1387), in the study its main focus are on induction and calculating the Options to manage price (for gasoline and diesel products). In this study, using input- output table updated in 1383, the inflation direct and indirect effects (expected) has been studied. this report Research findings and computational results indicates that the price reform of energy carriers (especially gasoline and diesel) to the actual price levels (which are actually purchased and entered the country) and a gradual and Divided to The steep and scheduled, less inflationary effects than inflationary effects of Aforementioned goods price increases will be a sudden excretion. Along with the gradual reform of prices, monetary and fiscal policies and efficient program of targeted subsidies in order to minimize negative impacts and consequences of price adjustment is recommended. Ghaderi and estedlal (1378) in their study investigate the effect of increase in electricity price on Compensatory change indices (CV) and net welfare loss (DWL) domestic electricity consumers in different income groups in Iran. After estimating the demand functions, the effect of electricity prices increasing on the net welfare loss and compensatory changes indices were evaluated and the results are the following :1- compensation change of the poor groups to rich groups is growing .2-Loss Net welfare from poor groups to rich groups is growing .3-Policies Implementing increasing of electricity prices and padding of direct subsidies to individuals, increase low and middle groups welfare and decreases the welfare of up groups of the population. Suri and bakhtiyar (1377) in the paper were examined the direct and indirect effects of energy price increases. For this purpose is used input-output especially the 1373. The results indicate that if the price all types of energy reaches to finished price level( the average is between 276 percent increase in energy prices) will cause the average price COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1080 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2011 VOL 3, NO 8 increased about 56 percent. Among them the price of diesel has more increase than other types, the main reason is that it largely diesel by the intermediate goods used in production of goods. The study is conducted 2. Theoretical base 2.1. The subsidy The subsidy is the amount of (or action) that maintains consumer’s prices below market prices or prices of producer’s high market prices or reduces costs for consumers and producers. Thus, any action that could lead to reduced consumer price or producer costs typically is in the form of subsidies. For example, direct aid and grants to the supplier firms, the adoption and enforcement of protection laws, granting low-interest loans to producers and suppliers, The R & D expenditure is usually done by governments, tax deductions ,reductions in trade tariffs and customs duties, management and government ownership of energy reserves, Reduce costs of production and consumption of energy and environment in general ,all direct and indirect government intervention and subsidies, the name only to price subsidies, direct, or cash and is not limited to the stipulated budget.( Von Moltke, A., Colin M. and T. Morgan (ed.))Different methods for calculating the amount of interest subsidy are that two main methods are: the gap in prices and consumer subsidy equivalents, which are somewhat similar and used interchangeably. The Subsidy in The second method consists of the sum the difference between domestic and world prices plus all direct financial payments to the consumer to reduce the price paid for domestic consumption. (Energy balance, 1387, p. 19) 2.2 .Energy subsidies The Iranian economy is in transition from a centrally planned towards a decentralized planning and energy subsidies, one of the main issues in this transition that the government imposes enormous costs each year. Table 1 shows energy subsidies amount to separate consumer sections of the carriers in 1387. The main assumptions in calculating the subsidy of energy carriers in 1387 are as follows: -Equivalent to 9,574 rial per dollar exchange rate (average announced by the central bank) is considered. - Petroleum products Economic value equivalent to the price of imported, exported or FOB price is considered in the Persian Gulf. -To calculate the economic value of natural gas has been used the average weighted price of domestic (690 rial per cubic meter) and price of export to Turkey. -Electricity finished costs is calculated due to costs of the power industry and with regard to the economic value of power plants fuel (fuel without subsidy). In applying the second method described above for the calculation of energy subsidies in Iran, many Simplifications are applied. So the amount of energy subsidy payments that is question here is only an approximation. Talking about the finished cost of goods and services following the removal of energy subsidies is for this reason that energy as a vital inputs (Because it was cheap) is present in the production function of economics In Iran that Any change in the price of these inputs, by the share price in short- term and long-term impact through impact on inputs market, affect the price index of manufactured goods and services. COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1081 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2011 VOL 3, NO 8 2.3. Subsidies for energy carriers in the industry Industry sector is among sectors Major energy consuming after the residential and transportation. In the Table 2 we see that the industry is allocating 19. 1 percent of the total subsidies paid that the sum is equal to 101377.3. 2.4. Influence channels of elimination of energy carrier’s subsidies s in the industry According to Principles of economics, production is the maximum amount of product that can be achieved certain production inputs. So the required input for the production cycle, inputs will be. Energy carriers are the most important production inputs. Accordingly, increasing the price of these inputs will lead to increased production costs for producers. As is clear is that the underlying inflationary cost pressures. Among some of the producer’s whit no high technology and reduction competitive capability in short-term are excluded of the production process. Reducing product will raise the cost of inflation pressure. 3. Electricity and its Subsidy figure in the Iran economy Energy consumption in a variety of products, accounted for a large scale in Iran. The most important issue in inputs consumption in general and energy carriers in particular, is their price. Electrical energy is an expensive and valuable and its finished cost (affected by factors such as low share of hydroelectric power product , Network size, and network load centers and away from each other, the combination of poor eating patterns and the network load factor) is high. According to economic theory, however, costs associated with producing a commodity that goods must be paid by users, but based on what subscribers pay electricity prices is not finished rate. In our country, in edition of electricity tariffs in addition to the economic, social and political considerations involved, and cause to Disproportion of electricity tariffs with the cost of capital, finished and it is now. Tariff may be as an efficient tool for optimizing of Subscribers power consumption, but not modify it to suit the increased costs caused by its use is inappropriate. Therefore, the Lack of coverage costs through tariff on one hand and non-competitive market and the absence of significant private sector investment in the electricity sector on the other hand, cause to the continuity of electricity industry services has been compromised. Electricity tariffs based on the type of consuming are divided to: home, public, industrial ,agricultural and other uses. Tariffs change proportional to Seasonal and regional differences. For example, in summer and increasing demand for disposable, general Joint electricity prices, agriculture, industrial and other uses will increase.also two components are involved in the domestic electricity tariff: humidity, maximum medium of temperature. During the years 1383 to 1385, Electricity tariffs in Iran remained constant. At the end of 1385 the Council of Ministers determines a model for domestic applications that expenditures in excess of consumption are subsidized fewer subsidies. In 1386 electricity tariff for general consumption, agriculture and industry had not increased to 1385. But the electricity tariff of subscribers and other expenses increased 15 percent over the previous year. Electricity tariffs rise in domestic applications in 1386 to years ago. Increase in power tariff for domestic sector in terms of consumption patterns in this section was determined. In 1387 electricity tariffs in some sectors have been faced with change and movement. It is based on paragraph (c), 7 Component, of the Budget Law 1387determine free Price rial 773 of electricity per kilo watt/hour. Table (2) shows the average price of electricity in consumption different sectors during the years 1380 and 1387. As can be seen from this table, the average total price is in 1387 of about 173.2 rial per kilowatt/hour. There is the lowest price with 24.3 Rail is to the agricultural sector and most the price with 516 1.rial to other uses. The general principles that should be considered in the design of electricity tariffs are that electricity finished costs per kilowatt/hour for all type Subscribers is base how they consume. Considering the simultaneous of electric energy COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1082 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2011 VOL 3, NO 8 production and consumption and how consumption will have direct effect in the finished cost per kilowatt/hour electricity energy, should be calculate finished Cost per subscriber given the effect of the electricity network in terms of how energy consumption patterns, and based on that set and design rates for their electricity tariffs. Table 3 is the highest and lowest electricity finished cost to all by different types of tariffs on consumer issues related to the domestic sector, with 554.6 rail kilowatt/hour and industrial sector with 363.9 rails kilowatt/hour. Competition of The finished cost of electricity and its sell rate separately tariff indicate allocation most electricity subsidies to the Agriculture and domestic sector. Domestic sector have the highest finished cost of electricity, also benefited from the most subsidies that are paid. The important point is that the price of these products in Iran is cheaper than the countries of the world. In 2008, the highest electricity price in OECD countries in the industrial sector was duo to Italy with 29 cents per kilowatt-hour and in home sector duo to Denmark with 39.6 cents per kilowatt hour. Also Italy with 20.8 percent, the highest tax on electricity price in the industry and Denmark, with 53.4 percent maximum tax on electricity price in the domestic sector has. In this year In the case of Turkey, with nominal price index of 360.6 in the industrial sector and 405.5 in the domestic sector is the highest among the OECD countries. So this country has the lowest real price index in industrial sector. While in the home sector South Korea is the lowest real price index and then Switzerland, France, Spain, Portugal and Turkey are located. However, the Switzerland Is allocated to itself nominal price index with 89 in the home sector and 87.1in industry at the lowest price index in OECD countries. Japan is also the lowest price difference between real and nominal price level itself. 4. Electricity consumption and its subsidies in the industrial sector Today Human life is unimaginable without electricity. This energy in all fields of human material life has played an important direct or indirect effect. Communities’ electricity consumption could well reflect their benefit of advancement and technology. Electricity consumption in Iran is divided to six residential, commercial, public ,and industrial, transportation, and agriculture. The industry sector In addition to Manufacturing Industry and mining is including agriculture industries such as poultry farming, beekeeping and producing all kinds of worms also Plants of flour production, mushroom production, ice, tea ,Cold storages and flower production units are. In 1387 industry sector, with 32 percent of total sales of electric power after that the domestic sector, was the second largest consumer of supplied electricity by the Department of Energy. However, it is necessary to Mention that if be considered big industries consuming electricity that produced by itself, then the final consumption of industrial sector from electricity is 57531.7 gaga watt hour more than the domestic sector. Industries including Iron, steel, copper, petrochemicals, and cement, sugar and textile industries have high energy consumption. The high intake some of country’s big industries, it has had on them for financing part of their energy construction to build special power. In the 1388 Margin production of electricity in specific power plants of big industries was been about 7550. 2 gaga watt hours that their consumption was about 591.8 gigs watt hour. Special manufacturing of industries was equivalent to 6958.4 gigs watt hour that have sold 1333 gaga watt hour to nationwide network. In other words, the electricity consumption of this industries was been 5625.4 gaga watt hour. (Energy balance in 1388) COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1083 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2011 VOL 3, NO 8 Total electricity consumption in the industrial sector (including Refineries and coke making and blast furnace) in 1388 was amounted to 59313.1 million kilowatt-hours that Department of Energy has provided about 51459. 4 million kilowatt-hour of that.In this year numbers of subscribers in the industry sector were been 165 thousand segments that had been grew reduction 0. 3 percent proportion to one year ago. However, the average electricity consumption of a joint industry in 1387 is a 312465.2 kilowatt hour that is grew 4.2 proportions to one year ago. According to in the statistic of Tavanir company consider transport users in the industry sector ,therefore, for calculating consumption per capita share of the consumer industry sectors including industry, transportation sector consumption is calculated.Including measures taken in reducing energy consumption in the industrial sector could be Cited performing of an annual holiday program from 15 July until 15 September that Followed by a decrease of 731 MW on 27 August and 534 in the peak day (6 August) of the network need. Also Supplying fuel to the existing and Standby generators of industries in order to their exercise in 4 hours of network peak reduce 200 megawatt the need for network use in 3 months of summer. If you have no plans to modify consumption patterns the Industry's future will face serious challenges. Many solutions offered by various institutions that cause to Reduction and energy consumption management in this sector. But unfortunately due to the availability of cheap energy Factories were not looking to reduce energy consumption and use of these strategies. Perhaps one of the strengths targeting of the subsidies this is that with Occur the energy prices will create an opportunity for industry to use Optimum consumption patterns and presented approaches in this section. According to the instructions on the consumption pattern of electricity and energy Plants sub 13 process ,from 17 industrial process, with Demands above 5 MW of electricity are required to comply with the approved consumption patterns And electricity companies are obliged to monitor on Implementation the patterns of energy consumption by industrial plants are under its control and report . Electricity price for industrial sectors with electricity Demands above 5 MW, which do not comply with the abovementioned pattern of energy consumption, 20 percent increase. 5. Research Methodology: input-output model This study is analysis - applied, the results can use for decision making in the energy sector and planning in industries. Research Statistics and data, has been collected in documents method. Data analysis does using the input - output table in 1385. Input- output technique is a scientific tool for planning and economic predictions and experimental studies of quantitative interdependence between economic activities are related to each other that in the framework of the country production system to a number of sectors or economic activities are classified. This adaptation of the neoclassical theory of general equilibrium is. input-output table in the national economy shows relationship between productive different sectors and indicate trading volume of the economy sectors and shows that each economic sector sells products to of which the manufacturing sector (as intermediate goods) and demand the end (as the final item). Also that stated a part which parts do purchase their required inputs (labor, capital, energy, etc.). Input-output table and its analysis tables is powerful tool in the types of economic analysis including the relationship between final demand and output range of different activities, structure of demand, employment, prices analysis, energy analysis ,and environmental analysis ….etc. In this model expresses the dependencies as a set of linear equations. Naturally, the coefficients of these equations should be determined empirically. In The input - output table per unit show one time in the rows as producer or vendor of goods or services and other in columns as consumer or purchaser of goods or services. Input – output table is usually divided into three regions, which is shown as follows: The first area is a square table, exchanges is determined between sectors. It means each section what amount of the product or service offer to other parts (rows) and what amount of goods and services is consumed from other sectors as intermediate goods (columns). COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1084 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2011 VOL 3, NO 8 The second area that is considered as the final demand matrix, The final demand or final consumption will be provided that part of products of producing activities is allocated the final consumption of households, government, investment and exports . The third area is Preliminary data matrix or income of production Factors, Added value created in each sector separately are shown, each of its components, the share of labor and capital are benefiting from it. The relationship between the three different regions of table provides this feature calculating GDP Through method of production, expenditure and income together ,practical and can be controlled by the calculations. therefore input output model will follow of a computational framework in that all revenues derived from sales must be aligned with the total purchase costs; it means in the model is true The principle of equality total output (sales includes final demand) with the total input (purchase includes final payments) for each production sector in the economy . Also that is noteworthy all transactions in this table are considered in terms of monetary transactions, and each pair (row and column) can be considered as an account that should be in balance. It means the output value of the products (product row) with the cost of required data (production column) should be equal. In this table sections organized in a special classification and based on ISIC and tier Order in table rows and columns are the same. Each row shows each sector how much of itself product sells as an intermediary to other sections and how much of its production to final demand will be transferred to final consumers. Each column in the table shows that a part how provides the needs of other sectors of the economy. Needs are two class. first class The intermediary needs catch of other sectors And the second part the Primary factor service of economy such as labor, capital and land is expressed in the table as wages and salaries w, capital gains p and rental R. search hypothesis states that increasing the price of electricity (targeting subsidies) will affect the final price in Iranian industries. COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1085 ijcrb.webs.com DECEMBER 2011 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 8 6. Conclusion The most vulnerable products Number of row Product 1 Manufacture of aluminum products 30 1 Crude oil and natural gas 0/4 2 Transport via pipelines 16 2 0/5 3 4 Public Resorts 15 13 3 4 Manufacture of office machinery, accounting and computing Services of private residential units Sports and recreational activities Public and private technical and vocational secondary education Manufacture of basic iron and steel products Other mineral products Metal not elsewhere classified Manufacture of other basic metals and metal casting 12 5 Defense Affairs 0/8 11 6 Road Transport Times 0/8 10 7 Manufacture of tobacco products 0/9 9 8 0/9 8 9 Manufacture of radio, television and communication equipment and apparatus Manufacture of refined petroleum products and coal, coke and nuclear fuel processing Collection, purification and distribution of water 8 10 Rental of machinery and equipment without operator and of personal and household goods rental 1/1 5 6 7 8 9 10 Private primary education Percent change Low changing product Number of row Product Percent change 0/6 0/6 Services for residential units rented COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1 1086 ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS DECEMBER 2011 VOL 3, NO 8 References Salimian, zohreh, kordbache, marjan, sadeghi, mehdi, makarizadeh, vahab. 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World Bank, Policy Research, Working Paper No. 1442 (Washington) COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1089 ijcrb.webs.com DECEMBER 2011 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 8 Annexure Table 1 subsidies for energy carriers in 1387 to separate the carriers and consumer sectors Carriers/sectors Domestic industry Agricultural Transport Commercial Public sum percent petroleum — 242 136.3 9685.4 7.6 418.6 97657.9 18.4 Kerosene 39406.4 452.1 193.0 — 2051.9 1066.7 4317.1 8.1 Gas oil 3898.1 19200.5 25548.2 110411.6 4482.3 6953.8 170494.5 32.2 Fuel oil 17.4 31645.7 93.7 3920.9 6162.7 610.3 42450.7 8.0 Liquid gas 10829.6 1743.3 — 944.5 — — 13517.4 2.5 Electricity 46972.8 33573.2 18137.8 151.8 4153.2 15390.7 118379.4 22.3 Natural Gas 25554.7 14520.5 143.6 1278.7 2249.0 738.5 44485.1 8.4 sum 126679.0 101377.3 44252.7 213560.8 19106.6 25178.7 530155.1 100.0 23.9 19.1 8.3 40.3 3.6 4.7 100.0 — percent Milliard rial Source: Energy balance, 1387, p. 20 Table 2 the average price of electricity in consumer different sectors Total Other uses industrial agricultural public Domestic Year 98.52 273.86 133.59 11.49 99.59 72.92 1380 114.1 342.31 146.94 12.65 124.49 85.14 1381 131.76 412.01 162.91 14.00 152.00 97.00 1382 151.06 515.25 185.02 16.01 175.89 107.08 1383 152.08 539.74 201.57 21.56 176.81 102.74 1384 152.78 541.16 200.41 21.25 181.70 102.92 1385 164.98 507.95 205.86 20.97 159.61 124.67 1386 173.22 516.13 201.97 24.27 233.66 122.39 1387 Kilo watthour/rial Source: Energy balance in 1387 COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1090 ijcrb.webs.com DECEMBER 2011 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 8 Table 3 The electricity finished cost separate to the tariffs Total Other uses industrial agricultural public Domestic year 279.9 315.1 230.9 261.2 284.3 374.6 1380 313.7 344.9 234.1 279.2 311.5 396.9 1381 307.9 339.4 231.4 273.3 300.1 391.5 1382 301.0 327.2 230.0 271.2 297.8 377.8 1383 316.6 490.5 267.8 281.5 300.7 349.6 1384 326.1 505.2 275.9 290.0 309.7 360.1 1385 310.0 419.0 271.3 289.0 306.7 362.4 1386 588.0 447.0 363.9 425.0 405.6 554.6 1387 Kilo watt hour/rial Source: Energy balance in 1387 COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1091
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