Iranian Journal of Public Policy

Iranian Journal of Public Policy

Policy Analysis of Intended Nationally Determined Contribution (INDC) Under the Paris Agreement for the Electricity Industry

Document Type : Research Article

Authors
Reza Akhbari 1
Alireza Shakibaei 2
Mehdi Nejati 3
1 PhD candidate of international economics, University of Shahid Bahonar, Kerman, Iran
2 Associate Professor, Department of Economy, University of Shahid Bahonar, Kerman, Iran
3 Assistant Professor, Department of Economy, University of Shahid Bahonar, Kerman, Iran
10.22059/jppolicy.2021.84822
Abstract
The lack of a comprehensive model in the electricity industry for the quantitative analysis of the policy consequences adopted in the superior documents of this industry has made it difficult to evaluate policies. In this study, a dynamic general equilibrium model designed with the focus on the electricity industry & considering the Intended Nationally Determined Contribution (INDC) program as an superior document, the efficiency of strategies such as Foreign Direct Investment (FDI) & energy price increment -as an alternative strategy- to achieve the targeted amount of carbon were measured. The results showed that although FDI & rising energy prices can not achieve the goals, but it has positive effects on the output value of the industrial sector & the electricity industry particularly. Finally, in order to achieve the goal of emissions reduction & reducing the rebound effects of improving energy efficiency in the electricity sector, it is recommended that electricity prices be increased significantly for the private household.
Keywords
Policy Analysis
Dynamic General Equilibrium
Paris Agreement
Electricity Industry
Rebound Effect
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Iranian Journal of Public Policy
Volume 7, Issue 4
2021
Pages 49-70