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Fuel Pricing Impact on Energy Carriers Consumption, Greenhouse Gases and Air Pollutants Mitigation in Household Sector

Authors:
[ Mohammad Sadegh Ahadi ] -
[ Hamid Davoudpour ] -

Abstract:

This paper evaluates the impact of fuel pricing and application of the efficient home appliance on GHGs emission reduction in household sector of the country. For this purpose, econometrics models have developed the demand fbnctions for energy carriers in household sector. Then impact of economic variable variation on energy demand and GHGs and air pollutant emission were assessed. The stability test for variables' coefficient shows that the demand functions with constant price elasticity are not suitable for demand forecasting and policy making in the country. Furthermore, econometrics demand functions with variable elasticity were also developed. The results reveal that the price elasticity for electricity demand in CEM for short-run and long run 1s -0 142 and -0.901, respectively. In the VEM the 250% increase in the electricity price in short-run resulted in the price elasticity change from -0.02 to -0.475, hence the 250% increase in electricity price in long run resulted in the price elasticity change from -0.15 to -2. 0. Finally, with help of xene based Approach the impact of fuel pricing and applying efficient home appliance in trends of Gags emission were assessed in Scenarios Base and High, developed on two different cases of Business-as-Usual and Management. The results indicate that the energy carriers demand in the BA L case of base scenario increases from 208.9 MBOE (million barrel of oil equivalent) in 2000.to 463. 6 MBOE in 201 1 with annual growth rate CIF 6. 8%. Comparatively, the energy carriers' price rs increased to total price (except .for natural gas) it will cause the energy carriers demand in 2011to be reduced from 463.6MBOEto 40 1.7 MBOE. Similarly, in the BAU case of base scenario, the C02 emission increases from 98,737 Ktons in 2000 to 205,304 Ktons in 201 1 with annual growth me of 6.3%. In comparison, if the fuel price is increased it will cause the C02 emission in 201 1 to '3le reduced from 205,304 Ktons to 160,590 Ktons.

Keywords:

Demand Function, Pricing Policy, Greenhouse Gases Mitigation, Energy Planning