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Impacts of Electricity Efficiency Improvements on Factors Market: A Computable General Equilibrium Approach

Haqiqi, Iman and Manzoor, Davood and Aghababaei, Mohammad (2013): Impacts of Electricity Efficiency Improvements on Factors Market: A Computable General Equilibrium Approach. Published in: Journal of Planning and Budgeting , Vol. 4, No. 17 (2013): pp. 25-44.

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Abstract

The purpose of this paper is to study the “disinvestment effect” of a counterfactual economy-wide electricity efficiency improvement in Iran. The Researchers apply a computable general equilibrium model with special assumptions about given electricity price, heterogeneous labor market, wage rigidity and imperfect capital mobility between sectors. It was found that after a 10% electricity efficiency improvement, the capital stock declined by 9.53% and employment reduced by 9.48% in the electricity sector. Services, industries, and agriculture sectors had more capital and labor inflow respectively.

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