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Fuel Switching Impacts of the Industry Sector under the Clean Development Mechanism: A General Equilibrium Analysis of Iran

Author

Listed:
  • Maliheh Ashena

    (Department of Management and Economics, Tarbiat Modares University, Tehran, Iran)

  • Hossein Sadeghi

    (Department of Management and Economics, Tarbiat Modares University, Tehran, Iran,)

  • Kazem Yavari

    (Department of Management and Economics, Tarbiat Modares University, Tehran, Iran)

  • Reza Najarzadeh

    (Department of Management and Economics, Tarbiat Modares University, Tehran, Iran)

Abstract

The importance of international cooperation in reducing the green house gas has been widely recognized. The primary tool for involving developing countries in carbon reduction without hindering their development is the clean development mechanism (CDM). In order to simulate numerically the impact of the Iran clean energy development of the industrial sector under the CDM, a computable general equilibrium model is used. The numerical simulations reveal the growth potential and sustainable development benefits that represent the CDM for Iran, though the environmental impact in terms of carbon emission of sectors appears broadly mixed. Based on results some sectors benefit from these clean investment flows - including industry - other sectors show carbon emission increases, but the overall emission of the economy decrease and results in lower environmental costs in gross domestic product.

Suggested Citation

  • Maliheh Ashena & Hossein Sadeghi & Kazem Yavari & Reza Najarzadeh, 2016. "Fuel Switching Impacts of the Industry Sector under the Clean Development Mechanism: A General Equilibrium Analysis of Iran," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 542-550.
    • Handle: RePEc:eco:journ2:2016-03-20
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    References listed on IDEAS

    as
    1. Niels Anger & Christoph Böhringer & Ulf Moslener, 2007. "Macroeconomic impacts of the CDM: the role of investment barriers and regulations," Climate Policy, Taylor & Francis Journals, vol. 7(6), pages 500-517, November.
    2. Johannes Alexeew & Linda Bergset & Kristin Meyer & Juliane Petersen & Lambert Schneider & Charlotte Unger, 2010. "An analysis of the relationship between the additionality of CDM projects and their contribution to sustainable development," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 10(3), pages 233-248, September.
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    Cited by:

    1. Ghazal Shahpari & Hossein Sadeghi & Malihe Ashena & David García-León, 2022. "Drought effects on the Iranian economy: a computable general equilibrium approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4110-4127, March.

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    More about this item

    Keywords

    Clean Development Mechanism; Computable General Equilibrium; Industry Sector; Iran;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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