Effects of Energy Carriers and their Price Increases on the National Economic Sectors
It is presumed that changes in energy prices directly affect water consumption, especially if abstracted from groundwater resources, because of the vital role energy plays in the different stages of water abstraction and treatment. The present study was, thus, designed and implemented to examine the...
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| Format: | Article |
| Language: | English |
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Water and Wastewater Consulting Engineers Research Development
2017-03-01
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| Series: | آب و فاضلاب |
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| Online Access: | http://www.wwjournal.ir/article_39477_83b11392308569a6318e6e3c1d7b7f25.pdf |
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| author | Nasser Shahnoushai Leili Abolhasani Kamran Davari Fatemeh Hayatgheibi Zahra Nematollahi |
| author_facet | Nasser Shahnoushai Leili Abolhasani Kamran Davari Fatemeh Hayatgheibi Zahra Nematollahi |
| author_sort | Nasser Shahnoushai |
| collection | DOAJ |
| description | It is presumed that changes in energy prices directly affect water consumption, especially if abstracted from groundwater resources, because of the vital role energy plays in the different stages of water abstraction and treatment. The present study was, thus, designed and implemented to examine the effects of different energy pricing scenarios on water consumption. The estimated values were obtained according to the dynamic general equilibrium model using 2011 as the base year and different scenarios likely to realize over the following ten years. Results indicate that water price will increase by 4.42% in the base year if a 100% increase occurs in the prices of all the energy carriers, with the contributions of oil products, power, and natural gas to the increased water price being 72.18%, 17.7%, and 10.12%, respectively. Clearly, oil products have the greatest impact on water prices and reductions in water demand in most economic activities. Moreover, a decline, albeit with a certain fluctuation, is observed in water consumption percentages with all the scenarios examined and the values of the variables are predicted to return to their non-shock status so that the shock effects gradually disappear. At lower energy price rates, the reactions to increasing energy prices realized in the form of increased water price and declining water consumption exhibit an exponentially declining trend. It may be concluded that changes in energy prices under the present conditions do not generally lead to any substantial changes in water demands. This may be attributed to the currently rather low energy prices. In the farming and horticulture subsectors, however, reduction in water demand is notable. |
| first_indexed | 2024-12-19T07:31:54Z |
| format | Article |
| id | doaj.art-ac66c5fa2ca84050889d7cccf30b0324 |
| institution | Directory Open Access Journal |
| issn | 1024-5936 2383-0905 |
| language | English |
| last_indexed | 2024-12-19T07:31:54Z |
| publishDate | 2017-03-01 |
| publisher | Water and Wastewater Consulting Engineers Research Development |
| record_format | Article |
| series | آب و فاضلاب |
| spelling | doaj.art-ac66c5fa2ca84050889d7cccf30b03242022-12-21T20:30:41ZengWater and Wastewater Consulting Engineers Research Developmentآب و فاضلاب1024-59362383-09052017-03-01281849410.22093/wwj.2017.3947739477Effects of Energy Carriers and their Price Increases on the National Economic SectorsNasser Shahnoushai0Leili Abolhasani1Kamran Davari2Fatemeh Hayatgheibi3Zahra Nematollahi4Prof. of Agricultural Economics, Ferdowsi University of MashhahdAssist. Prof. of Agricultural Economics, Ferdowsi University of MashhahdProf. of Hydraulic Engineering, Ferdowsi University of MashhahdPhD Student of Agricultural Economics , Sari University of Agricultural Sciences and Natural Resources, SariPhD Student of Agricultural Economics , Sari University of Agricultural Sciences and Natural Resources, SariIt is presumed that changes in energy prices directly affect water consumption, especially if abstracted from groundwater resources, because of the vital role energy plays in the different stages of water abstraction and treatment. The present study was, thus, designed and implemented to examine the effects of different energy pricing scenarios on water consumption. The estimated values were obtained according to the dynamic general equilibrium model using 2011 as the base year and different scenarios likely to realize over the following ten years. Results indicate that water price will increase by 4.42% in the base year if a 100% increase occurs in the prices of all the energy carriers, with the contributions of oil products, power, and natural gas to the increased water price being 72.18%, 17.7%, and 10.12%, respectively. Clearly, oil products have the greatest impact on water prices and reductions in water demand in most economic activities. Moreover, a decline, albeit with a certain fluctuation, is observed in water consumption percentages with all the scenarios examined and the values of the variables are predicted to return to their non-shock status so that the shock effects gradually disappear. At lower energy price rates, the reactions to increasing energy prices realized in the form of increased water price and declining water consumption exhibit an exponentially declining trend. It may be concluded that changes in energy prices under the present conditions do not generally lead to any substantial changes in water demands. This may be attributed to the currently rather low energy prices. In the farming and horticulture subsectors, however, reduction in water demand is notable.http://www.wwjournal.ir/article_39477_83b11392308569a6318e6e3c1d7b7f25.pdfEnergy Carrier PriceDynamic General EquilibriumWater Consumption |
| spellingShingle | Nasser Shahnoushai Leili Abolhasani Kamran Davari Fatemeh Hayatgheibi Zahra Nematollahi Effects of Energy Carriers and their Price Increases on the National Economic Sectors آب و فاضلاب Energy Carrier Price Dynamic General Equilibrium Water Consumption |
| title | Effects of Energy Carriers and their Price Increases on the National Economic Sectors |
| title_full | Effects of Energy Carriers and their Price Increases on the National Economic Sectors |
| title_fullStr | Effects of Energy Carriers and their Price Increases on the National Economic Sectors |
| title_full_unstemmed | Effects of Energy Carriers and their Price Increases on the National Economic Sectors |
| title_short | Effects of Energy Carriers and their Price Increases on the National Economic Sectors |
| title_sort | effects of energy carriers and their price increases on the national economic sectors |
| topic | Energy Carrier Price Dynamic General Equilibrium Water Consumption |
| url | http://www.wwjournal.ir/article_39477_83b11392308569a6318e6e3c1d7b7f25.pdf |
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