Comparing energy efficiency and price policy from a sustainable development perspective: Using fossil fuel demand elasticities in Iran

IF 3.3 Q3 ENERGY & FUELS

MRS Energy & Sustainability Pub Date : 2022-03-29 DOI:10.1557/s43581-022-00024-0

Vahid Mohamad Taghvaee, A. A. Arani, S. Soretz, L. Agheli

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引用次数: 13

Abstract

The price elasticity of fossil fuel demand is lower than one and inelastic. The price policy is ineffective in reducing fossil fuel consumption. The technology elasticity of fossil fuel demand is higher than one and elastic. Energy efficiency improvement is much more effective than price policy for reducing fossil fuel consumption. This study aims to compare the effects of price policy with energy efficiency improvement on energy consumption and sustainable development. To this end, our research estimates the demand elasticities of diesel, gasoline, fuel oil, LPG, and kerosene using Dynamic Log-Linear and AutoRegression Distributed Lag in Iran during 1976–2017. In 2018, Iran had the first rank in the world for the amount of subsidy on various kinds of fossil fuels. Based on the results, technology is up to 100 times more effective than price policy. Technology, by only 10% improvement in energy efficiency, saves about 400 billion liters of fossil fuels (or 15% of total), 3.6 billion US Dollars of the expenditure thereon (or 17% of total), 217 billion tons of CO_2 emissions (or 15% of total), and more than 338 million DALYs (or 4.5 million lives). It leads to upgrading social, environmental, health, and economic pillars of sustainable development, especially with gasoline consumption drop. Thus, policy-makers are suggested to promote energy-consuming technologies rather than increasing the fuel price. Graphical abstract Video abstract

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从可持续发展角度比较能源效率和价格政策：利用伊朗的化石燃料需求弹性

化石燃料需求的价格弹性小于1，且缺乏弹性。价格政策在减少化石燃料消耗方面是无效的。化石燃料需求的技术弹性大于1且具有弹性。在减少化石燃料消耗方面，提高能源效率比价格政策有效得多。本研究旨在比较价格政策与能效提升对能源消费和可持续发展的影响。为此，我们的研究使用动态对数线性和自回归分布滞后方法估计了伊朗1976-2017年期间柴油、汽油、燃料油、液化石油气和煤油的需求弹性。2018年，伊朗各类化石燃料补贴金额居世界首位。根据研究结果，技术的有效性是价格政策的100倍。能源效率仅提高10%，技术就能节约约4000亿升化石燃料(占总量的15%)，节约36亿美元化石燃料支出(占总量的17%)，减少2170亿吨二氧化碳排放(占总量的15%)，减少3.38亿DALYs(450万人的生命)。它导致了社会、环境、健康和经济可持续发展支柱的升级，特别是随着汽油消费的下降。因此，建议政策制定者推广高耗能技术，而不是提高燃料价格。图形摘要视频摘要

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来源期刊

MRS Energy & Sustainability ENERGY & FUELS-

CiteScore

6.40

自引率

2.30%

发文量