AN OVERVIEW OF ENERGY CONSUMPTION AND CO2 EMISSIONS IN IRAN'S RESIDENTIAL SECTOR: ENERGY TRANSITION AND SUBSIDY POLICIES

Year 2024, Volume: 6 Issue: 4, 75 - 94, 30.10.2024

Behnam Ata

Abstract

The transition from fossil fuels to renewable energy sources has become a critical global issue, particularly in response to climate change. This study aims to analyse the trends in energy consumption and CO2 emissions within Iran's household sector. The findings reveal a significant increase in energy consumption in Iran between 2001 and 2019. Despite the household sector's heavy reliance on fossil fuels, a shift in fuel consumption patterns can be observed, with a transition from oil to natural gas starting in 2008. Electricity generation in Iran is also predominantly fossil fuel-based, with natural gas playing a major role. This underscores the urgent need to reinforce renewable energy sources to mitigate CO2 emissions from the household sector. Another key factor influencing energy consumption in Iran is the country's extensive energy subsidies. The disparity in fuel prices compared to neighbouring countries has also led to fuel smuggling. However, the results show that the twophase subsidy reform plan implemented in 2010 and 2013 did not lead to a reduction in energy consumption. Therefore, further reforms are needed to improve energy equity and reduce CO2 emissions in the household sector.

Keywords

Energy consumption, Subsidy, Household sector, Energy transition, Iran.

References

• Alamdari, Pourya, Omid Nematollahi and Sayed Mojtaba Mirhosseini (2012). “Assessment of Wind Energy in Iran: A Review”. Renewable and Sustainable Energy Reviews, 16(1): 836–860. doi: https://doi.org/10.1016/j.rser.2011.09.007
• Aryanpur, Vahid, Mahshid Fattahi, Slab Mamipour, Mahsa Ghahremani, Brian O. Gallachóir, Morgan D. Bazilian and James Glynn (2022). “How Energy Subsidy Reform Can Drive the Iranian Power Sector Towards a Low-Carbon Future”. Energy Policy, 169. doi: https://doi.org/10.1016/j.enpol.2022.113190
• Aryanpur, Vahid, Mahsa Ghahremani, Slab Mamipour, Mahshid Fattahi, Brian O. Gallachóir, Morgan D. Bazilian, and James Glynn (2022). “Ex-Post Analysis of Energy Subsidy Removal through Integrated Energy Systems Modelling”. Renewable and Sustainable Energy Reviews, 158. doi: https://doi.org/10.1016/j.rser.2022.112116
• Ata, Behnam, Parisa Pakrooh, Ayoub Barkat, Ramzi Benhizia Janos Pénzes (2022). “Inequalities in Regional Level Domestic CO2 Emissions and Energy Use: A Case Study of Iran”. Energies, 15(11). doi: https://doi.org/10.3390/en15113902
• Ata, Behnam, Parisa Pakrooh and Janos Pénzes (2023). “Driving Factors of Energy Related CO2 Emissions at a Regional Level in the Residential Sector of Iran”. Scientific Reports, 13(1). doi: https://doi.org/10.1038/s41598-023-44975-x
• Bahrami, Mohsen and Payam Abbaszadeh (2013). “An Overview of Renewable Energies in Iran”. In Renewable and Sustainable Energy Reviews, 24: 198–208. doi: https://doi.org/10.1016/j.rser.2013.03.043
• Digiconomist (2021). Bitcoin energy consumption index. Retrieved from http://bitcoinenergyconsumption.com/. Accessed: 08.10.2024.
• Esfahani, Mohamad Nasr and Ehsan Rasoulinezhad (2020). “Energy Transition Modelling in Iran: An Evidence from the ARDL Bound Testing Method”. Petroleum Business Review, 4(2): 35-43.
• Fattouh, Bassam and Laura El-Katiri (2013). “Energy Subsidies in the Middle East and North Africa”. Energy Strategy Reviews, 2(1): 108–115. doi: https://doi.org/10.1016/j.esr.2012.11.004
• Gangopadhyay, Shubhashis, Bharat Ramaswami and Wilima Wadhwa (2005). “Reducing Subsidies on Household Fuels in India: How Will it Affect the Poor?”. Energy Policy, 33(18): 2326–2336. doi: https://doi.org/10.1016/j.enpol.2004.04.024
• Ghorbani, Nargis, Aghahosseini, Arman, & Breyer, Christian (2020). “Assessment of a Cost-Optimal Power System Fully Based on Renewable
• Energy for Iran by 2050 – Achieving Zero Greenhouse Gas Emissions and Overcoming the Water Crisis”. Renewable Energy, 146, 125–148. https://doi.org/10.1016/j.renene.2019.06.079
• Giannakidis George, Maryse Labriet, Brian O. Gallachoir and GianCarlo Tosato (2015). Informing Energy and Climate Policies Using Energy Systems Models: Insights from Scenario Analysis Increasing the Evidence Base. Springer.
• IEA (2021). Energy subsidies: tracking the impact of fossil-fuel subsidies. Kaivo-Oja, Jari, Jarmo Vehmas and Jyrki Luukkanen (2016). “Trend Analysis of Energy and Climate Policy Environment: Comparative Electricity Production and Consumption Benchmark Analyses of China, Euro area, European Union, and United States”. Renewable and Sustainable Energy Reviews, 60: 464–474. doi: https://doi.org/10.1016/j.rser.2016.01.086
• Khatinoglu, Dalga (2016). Iran to generate 7% of electricity from renewables, or face fines. Retrieved from: http://en.trend.az/iran/business/2680790.html. Accessed: 10.10.2024.
• Mann, Henry B. (1945). “Nonparametric Tests Against Trend”. 13(3): 245-259. Ministry of Energy of Iran (2021). Energy balance sheet. Retrieved from https://irandataportal.syr.edu/energy-environment. Accessed: 07.10.2024.
• Mirzaei, Maryam and Mahmoud Bekri (2017). “Energy Consumption and CO2 Emissions in Iran, 2025”. Environmental Research, 154: 345–351. doi: https://doi.org/10.1016/j.envres.2017.01.023
• Mohammadi, Mohammad, Younes Noorollahi and Behnam Mohammadi-Ivatloo (2018). “An introduction to smart energy systems and definition of smart energy hubs”. In Operation, Planning, and Analysis of Energy Storage Systems in Smart Energy Hubs. Springer.
• Petkova, Nikolay and Radovan Stanek (2013). Analysing energy subsidies in the countries of Eastern Europe. Caucasus and Central Asia. OECD Working Paper.
• Noorollahi, Younes, Henrik Lund, Steffen Nielsen and Jacob Z. Thellufsen (2021). “Energy Transition in Petroleum Rich Nations: Case Study of Iran”. Smart Energy, 3. doi: https://doi.org/10.1016/j.segy.2021.100026
• Noorollahi, Younes, Meysam Pourarshad and Alireza Veisi (2021). “The Synergy of Renewable Energies for Sustainable Energy Systems Development in Oil-Rich Nations: Case of Iran”. Renewable Energy, 173: 561–568. doi: https://doi.org/10.1016/j.renene.2021.04.016
• Tassev, Lubomir (2021). Iran to shut down licensed crypto miners in peak hours of power consumption. Retrieved from https://news.bitcoin.com/iran-to-shutdown-licensed-crypto-miners-in-peak-hours-of-power-consumption/. Accessed: 12.10.2024.
• TAVANIR (2015). Statistical report on 50 years of activities of Iran electric power industry (1967-2016) Tehran. Retrieved from https://policy.asiapacificenergy.org/sites/default/files/Statistical%20Report_red. pdf. Accessed: 10.10.2024
• University of Cambridge (2020). Bitcoin Mining Map. Retrieved from https://cbeci.org/mining_map. Accessed: 10.10.2024.
• World Energy Outlook 2021 – Analysis - IEA. (2021). International Energy Agency. Retrieved from https://www.iea.org/reports/world-energy-outlook-2021. Accessed: 12.10.2024.