“Investigating and Simulating the Effect of Environmental Policies on Different Sectors of Iran's Economy Until the Horizon of 2050: The Multi-Regional Computable  General Equilibrium Model Approach”

Gholami, Mostafa; Sadeghi, Zeinolabedin; Jalaee Esfandabadi, Seyyed Abdul Majid; Nejati, Mehdi

doi:10.22055/jqe.2025.48356.2672

“Investigating and Simulating the Effect of Environmental Policies on Different Sectors of Iran's Economy Until the Horizon of 2050: The Multi-Regional Computable General Equilibrium Model Approach”

https://doi.org/10.22055/jqe.2025.48356.2672

Articles in Press, Accepted Manuscript
Available Online from 28 October 2025

Quarterly Journal of Quantitative Economics (JQE)

Document Type : Article-Based Dissertations

Authors

Mostafa Gholami ¹

Zeinolabedin Sadeghi ²

Seyyed Abdul Majid Jalaee Esfandabadi ³

Mehdi Nejati ²

¹ Ph.D. Candidate of Economics, Faculty of Management and Economics, Shahid Bahonar University of Kerman, Kerman, Iran.

² Associate Professor of Economics, Faculty of Management and Economics, Shahid Bahonar University of Kerman, Kerman, Iran.

³ Professor of Economics, Faculty of Management and Economics, Shahid Bahonar University of Kerman, Kerman, Iran.

Abstract

One of the most important issues at the global and national level in many countries of the world are environmental issues, and so far important international conferences and meetings have been held in this regard, and countries have committed to numerous treaties and conventions to prevent the worsening of the global environmental situation. Considering the economy that relies on fossil fuels in Iran, as well as the pollution caused by these types of fuels, it is very important to pay attention to policy making in this field in different sectors. Therefore, to answer these concerns, there are various policy tools in the hands of policymakers, the most important of which is the carbon tax.In this study, a Computable Dynamic General Equilibrium (CGE) model has been used to investigate the effects of carbon tax and the effects of carbon tax recycling under different scenarios.In this research, export, import, production and price of different sectors have been investigated. The simulated results and the application of scenarios to different sectors of Iran's economy show that the production in energy-intensive industries has decreased drastically in four scenarios, and in contrast, the production of renewable energy has increased significantly in all scenarios.Also, in the services and agriculture sector, production has increased only in scenario number 5. In accordance with the change in production, the price has also changed in all scenarios.

Keywords

Environmental policies

income recycling

economic sectors

multi-regional Computable general equilibrium model

Subjects