Rebound Effects of Improved Energy Efficiency in Energy Intensive Industries: An Intertemporal Dynamic General Equilibrium Model

Energy-intensive industries in Iran are responsible for a significant share of energy consumption, especially oil products. Therefore, there is a major focus on promoting energy efficiency in such industries. Energy efficiency improvement results in rebound and backfire effects. In this paper we est...

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Main Authors: Zohreh Salimian, fatemeh Bazzazan, Mirhossein Mousavi
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2016-12-01
Series:Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān
Subjects:
Online Access:https://jiee.atu.ac.ir/article_7976_1c6cd9f97bc19759b56368a5d64e0bd9.pdf
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author Zohreh Salimian
fatemeh Bazzazan
Mirhossein Mousavi
author_facet Zohreh Salimian
fatemeh Bazzazan
Mirhossein Mousavi
author_sort Zohreh Salimian
collection DOAJ
description Energy-intensive industries in Iran are responsible for a significant share of energy consumption, especially oil products. Therefore, there is a major focus on promoting energy efficiency in such industries. Energy efficiency improvement results in rebound and backfire effects. In this paper we estimate the effects of fuel oil efficiency improvement in energy intensive industries based on intertemporal general equilibrium model. Simulation for long run period is done for two scenarios, including 3.1% efficiency improvement in energy intensive industries and all sectors of economy. Results show that the rebound effects in chemical industry, food and beverage, basic metal, paper, Rubber and plastic, non- metallic minerals, and wood industries leads to rebound effects in the first scenario. In the long-run, backfire effects are seen in the second scenario in which efficiency improvements for all sectors is considered. In addition, efficiency improvement will result in production cost decrease. Chemical and non- metallic mineral industries experiencing the most decreases of production cost around 1.1% and 0.7%, respectively.
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spelling doaj.art-a07879885e3c4842bdf1d5b04077a6172024-01-02T10:48:04ZfasAllameh Tabataba'i University PressPizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān2423-59542476-64372016-12-0162116320010.22054/jiee.2017.79767976Rebound Effects of Improved Energy Efficiency in Energy Intensive Industries: An Intertemporal Dynamic General Equilibrium ModelZohreh Salimian0fatemeh Bazzazan1Mirhossein Mousavi2Ph.D Student of Economics Department Faculty of Social Sciences and Economics Alzahra UniversityAlzahra UniversityAssociate Professor, Economics Department, Faculty of Social Sciences and Economics, Alzahra UniverstiyEnergy-intensive industries in Iran are responsible for a significant share of energy consumption, especially oil products. Therefore, there is a major focus on promoting energy efficiency in such industries. Energy efficiency improvement results in rebound and backfire effects. In this paper we estimate the effects of fuel oil efficiency improvement in energy intensive industries based on intertemporal general equilibrium model. Simulation for long run period is done for two scenarios, including 3.1% efficiency improvement in energy intensive industries and all sectors of economy. Results show that the rebound effects in chemical industry, food and beverage, basic metal, paper, Rubber and plastic, non- metallic minerals, and wood industries leads to rebound effects in the first scenario. In the long-run, backfire effects are seen in the second scenario in which efficiency improvements for all sectors is considered. In addition, efficiency improvement will result in production cost decrease. Chemical and non- metallic mineral industries experiencing the most decreases of production cost around 1.1% and 0.7%, respectively.https://jiee.atu.ac.ir/article_7976_1c6cd9f97bc19759b56368a5d64e0bd9.pdfrebound effectsgeneral equilibrium modelenergy intensive industries
spellingShingle Zohreh Salimian
fatemeh Bazzazan
Mirhossein Mousavi
Rebound Effects of Improved Energy Efficiency in Energy Intensive Industries: An Intertemporal Dynamic General Equilibrium Model
Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān
rebound effects
general equilibrium model
energy intensive industries
title Rebound Effects of Improved Energy Efficiency in Energy Intensive Industries: An Intertemporal Dynamic General Equilibrium Model
title_full Rebound Effects of Improved Energy Efficiency in Energy Intensive Industries: An Intertemporal Dynamic General Equilibrium Model
title_fullStr Rebound Effects of Improved Energy Efficiency in Energy Intensive Industries: An Intertemporal Dynamic General Equilibrium Model
title_full_unstemmed Rebound Effects of Improved Energy Efficiency in Energy Intensive Industries: An Intertemporal Dynamic General Equilibrium Model
title_short Rebound Effects of Improved Energy Efficiency in Energy Intensive Industries: An Intertemporal Dynamic General Equilibrium Model
title_sort rebound effects of improved energy efficiency in energy intensive industries an intertemporal dynamic general equilibrium model
topic rebound effects
general equilibrium model
energy intensive industries
url https://jiee.atu.ac.ir/article_7976_1c6cd9f97bc19759b56368a5d64e0bd9.pdf
work_keys_str_mv AT zohrehsalimian reboundeffectsofimprovedenergyefficiencyinenergyintensiveindustriesanintertemporaldynamicgeneralequilibriummodel
AT fatemehbazzazan reboundeffectsofimprovedenergyefficiencyinenergyintensiveindustriesanintertemporaldynamicgeneralequilibriummodel
AT mirhosseinmousavi reboundeffectsofimprovedenergyefficiencyinenergyintensiveindustriesanintertemporaldynamicgeneralequilibriummodel