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:: Volume 20, Issue 64 (Quarterly Journal of Economic Issues and Policies 2013) ::
3 2013, 20(64): 25-46 Back to browse issues page
Power Plant Fuel Price Reform, Value-Added Tax and Electricity Demand in Iran: A System Dynamics Approach
Davood Manzoor , Hossein Rezaee
Associate Professor University of Imam Sadiq , manzoor@isu.ac.ir
Abstract:   (5727 Views)
It is expected that amendments in the price of power plants' fuel result in the increase of electricity price and a reduction in electricity demand, especially in the long run. To assess the quantitative effects of the amendments, we've developed a system dynamics model for the electricity market in Iran consisting of demand, price and generation modules. The model has been simulated for a ten-year period, using powersim software. The results indicate that if the subsidized prices for power plant fuel maintain, electricity shortage of more than 300 terawatt hours shall be unavoidable in 1400. However, price increases, as recently enforced by the Subsidy Reform Law, lead into higher electricity prices and bring equilibrium back into the electricity market. Enforcing value added tax in the electricity market will also result in an extra 5.4% electricity demand reduction.
Keywords: Electricity Market, Electricity Demand, Electricity Price, System Dynamics.
Full-Text [PDF 513 kb]   (1575 Downloads)    
Type of Study: Research | Subject: Special
Received: 2013/05/4 | Accepted: 2013/05/8 | Published: 2013/05/8
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Manzoor D, Rezaee H. Power Plant Fuel Price Reform, Value-Added Tax and Electricity Demand in Iran: A System Dynamics Approach. 3. 2013; 20 (64) :25-46
URL: http://qjerp.ir/article-1-521-en.html


Volume 20, Issue 64 (Quarterly Journal of Economic Issues and Policies 2013) Back to browse issues page
فصلنامه پژوهشها و سیاستهای اقتصادی Journal of Economic Research and Policies
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