Strategic Studies of public policy

Strategic Studies of public policy

Investigating the effect of removing the energy subsidy of energy-intensive industries on the cost of production of products

Document Type : Research Paper

Authors
Zahra Esmaeili 1
Hedieh Alishiri 2
sohrab Amini Valashani 3
Mohammadreza Akbari 4
1 PhD in Biosystems Mechanical Engineering, Center of Innovation and Technology Development in Energy Consumption Management, Niroo Research Institute, Tehran, Iran.
2 2.PhD in Oil and Gas Economics, Allameh Tabataba'i University, Tehran, Iran.
3 3.PhD in Electrical Engineering, Head of the Center for Innovation and Technology Development in Energy Consumption Management, Niroo Research Institute, Tehran, Iran.
4 Assistant Professor, Department of Hydrocarbon Reservoirs, Faculty of Petroleum Engineering, Amirkabir University of Technology, Tehran, Iran.
10.22034/sspp.2024.2024774.3578
Abstract
Economic and industrial growth and development in countries of the world largely depends on the amount and level of efficient use of energy carriers. One of the main challenging issues of Iran's economy today is the issue of energy consumption and its pricing in industries. Because the granting of subsidies for various types of energy carriers in the industrial sector has put a lot of pressure on the government's budget. One of the ways to control the increasing growth of energy consumption in industries is to eliminate energy subsidies. So that it optimizes its consumption pattern in the industrial sector, according to the economic conditions of the country. Based on this, the gradual elimination of energy carrier subsidies in Iran in order to reduce its effects on the country's general budget requires attention to the dynamic effects of its consumption on the productivity and performance of each industry. Therefore, we decided to measure the impact of the increase in the price of gas and electricity in 3 scenarios (20-50 and 100) percent of the world price on raw materials and the cost of the product by carefully examining the reports presented in the financial statements of large and active companies in Provide energy industries to the country.
Keywords
Subsidy
energy
energy-intensive industries
gas price
electricity price
Subjects
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Strategic Studies of public policy
Volume 14, Issue 52
Examination of solutions to solve the challenge of the country's energy imbalance"
Autumn 2024
Pages 40-80