Price Elasticity of Electricity Demand in Iran Based on Computable General Equilibrium Model
- *Corresponding Author:
- Nosratollah Abbaszadeh
Phd of Economics
Tehran University, Iran
Email: [email protected]
Received Date: January 22, 2013; Accepted Date: February 22, 2014; Published Date: March 10, 2014
Citation: Abbaszadeh N, Bahmani A, Qavami M (2014) Price Elasticity of Electricity Demand in Iran Based on Computable General Equilibrium Model. J Account Mark 3:110. doi:10.4172/2168-9601.1000110
Copyright: © 2014 Abbaszadeh N, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Based on the CGE model and according to Social Accounting Matrix (SAM) 1380, this study simulates the impact of electricity price adjustment on demand for electricity, and the simulation results show the range of electricity elasticity of different consumers. The elasticity of Residential sector is relatively larger. However, the absolute values of the price elasticity are less than one. Furthermore, this paper quantitatively analyses the price elasticity of different categories of users, which are classified to Resident, Agriculture, Industry and Services. The elasticity absolute value of Residents is around (1.02- 0.87), that of Agriculture is around (0.013-0.015), that of Industry is around (0,013-0.032) and that of Services is around (0.02-0.031) in different scenarios. The analytical results of this paper can provide corresponding support for the formulation of electricity pricing mechanisms for Iran.