ISSN No : 2319-7935 (Print)
2319-7943 (Online)

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Author Name :
Jalil Badamfirooz , Azada Ghafari, Seyed Mohammad Mojabi , Amir Mohajer Tehrani
Publisher :
Ashok Yakkaldevi
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Abstract :
Continuation of Energy Subsidy Plan has caused the economic system resources to be distributed through energy carriers. Distribution of sources through implementing energy carrier subsidizing policy was followed by deviation of prices of energy carriers from the marginal cost. Consequence of this policy is reduction of energy productivity. Energy subsidizing has caused the proportion of the price of energy carriers to the price of the other production factor not to be in proportion to the facilities and constraints of Iranian economic system and manufacturers and consumers are provided with incorrect information on energy carriers. The consequence of providing them with incorrect information is that the production technology is propagated with low efficiency and manufacturing efficiency stands at a low level due to employing inefficient technology. Therefore, deficiency of manufacturing management is one of the expenditures of energy subsidizing. Since subsidies removal plan only consider price. It is unable to achieve all its goals, as non-price factors and price factor can play a crucial role. Therefore, non-price factors should also be considered in policymaking to decrease the consequences caused by inflation due to removing diesel energy subsidy if possible. Although price adjustment of energy carriers is considered as an inevitable and essential issue in the country, it is necessary to provide necessary conditions to move toward optimal consumption of these carriers before implementing price policies on energy carriers. Presenting energy management approaches to encounter with the negative effects of increasing energy price in industry is a principle.
Keywords :
  • energy management
  • energy subsidy
  • industry, iran
  • production of energy
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