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A new hybrid decision framework for prioritizing funding allocation to Iran's energy sector

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  • Alipour, M.
  • Alighaleh, S.
  • Hafezi, R.
  • Omranievardi, M.

Abstract

With the historic nuclear agreement now in effect, Iran's energy sector expects a new transformation to spark back into life. The government seeks to recover the years of backwardness by capital injections and attract foreign cash into the sector long starved of investment. In this respect, an appropriate and convenient resource allocation scheme in a long-term perspective is vital to keep Iran's position as a major energy supplier. This study develops a new hybrid multi-criteria decision-making model through integrating fuzzy Analytical hierarchy process with the Cumulative belief degree model to effectively evaluate energy alternatives for investment in Iran. Fuzzy analytical hierarchy process adds more benefits to the integrated model by providing the fuzzy pairwise comparison to identify weights of criteria while the Cumulative belief degree approach offers higher quality results of overall experts' opinions since it can deal with the missing values. STEEP analysis is also used to ensure capturing influential factors in five categories: social, technological, economic, environmental, and political. As a real application, the proposed methodology is applied to prioritize major energy resources for investment in Iran. Results indicate that natural gas is the ideal option for receiving the highest funding priority followed by solar and oil.

Suggested Citation

  • Alipour, M. & Alighaleh, S. & Hafezi, R. & Omranievardi, M., 2017. "A new hybrid decision framework for prioritizing funding allocation to Iran's energy sector," Energy, Elsevier, vol. 121(C), pages 388-402.
    • Handle: RePEc:eee:energy:v:121:y:2017:i:c:p:388-402
    DOI: 10.1016/j.energy.2017.01.024
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    14. Salimi, Mohammad & Faramarzi, Davoud & Hosseinian, Seyed Hossein & Gharehpetian, Gevork B., 2020. "Replacement of natural gas with electricity to improve seismic service resilience: An application to domestic energy utilities in Iran," Energy, Elsevier, vol. 200(C).
    15. Alipour, Mohammad & Hafezi, Reza & Ervural, Bilal & Kaviani, Mohamad Amin & Kabak, Özgür, 2018. "Long-term policy evaluation: Application of a new robust decision framework for Iran's energy exports security," Energy, Elsevier, vol. 157(C), pages 914-931.
    16. Ifaei, Pouya & Farid, Alireza & Yoo, ChangKyoo, 2018. "An optimal renewable energy management strategy with and without hydropower using a factor weighted multi-criteria decision making analysis and nation-wide big data - Case study in Iran," Energy, Elsevier, vol. 158(C), pages 357-372.
    17. Ghaboulian Zare, Sara & Alipour, Mohammad & Hafezi, Mehdi & Stewart, Rodney A. & Rahman, Anisur, 2022. "Examining wind energy deployment pathways in complex macro-economic and political settings using a fuzzy cognitive map-based method," Energy, Elsevier, vol. 238(PA).
    18. Souhankar, Amirhossein & Mortezaee, Ahmad & Hafezi, Reza, 2023. "Potentials for energy-saving and efficiency capacities in Iran: An interpretive structural model to prioritize future national policies," Energy, Elsevier, vol. 262(PB).

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