The Effect of Correcting Energy Carrier Prices on the Iran's Economic Sectors Using Input - output Table

In this study, we survey the effect of increase in energy carrier prices on Iran’s economic sectors using input - output (I-O) table of energy in 2006. This investigation is done in two stages including direct and indirect effects and two scenarios. These scenarios consist of a) the price of energy carriers adopted in 2010, and b) prices based on forecasts of the International Institute of Energy. Calculations of the first scenario and the first stage (direct effects) indicated that the brick and cement industries and transportation, warehousing and telecommunications services have been affected by 138, 86 and 65 percent in price increases, respectively. Also, the highest growth in product prices in the second scenario obtained in brick, cement and ceramic and tile industries by 473.68, 347.74 and 199.81 percent respectively. Furthermore, with defining maximum prices of energy carriers in the second scenario, the highest increase in marginal cost according to direct and indirect effects devoted to the brick, cement and ceramic and tile industries equivalent to772.54, 599.9 and 431.52 percent respectively. These industries ranked in the first to third places due to increase in product prices.