IIES
Quarterly Energy Economics Review
1735-1626
13
53
2017
9
1
The Effect of Non-Renewable Energy, on Institutional Quality and Production in the Iranian Economy: An Application of the State-Space Model
1
33
FA
mahboubeh
jafari
mjafari@pgu.ac.ir
Y
Karim
Eslamloueyan
keslamlo@rose.shirazu.ac.ir
N
The main goal of this paper is to study the effect of non-renewable energy on output and institutional quality in Iran as an energy-rich country for the period 1984-2013. To this end, we introduce institutional quality into an endogenous growth model. The model allows us to examine how the resource abundance can influence output both directly and indirectly. In our model, the quality of institution is assumed to affect output through its impact on research and development (R&D) activities and the allocation of labor force between productive and non-productive sectors. The estimation results of our state-space model indicate that one percent improvement in institutional quality increases output and R&D expenditure by 0.22 and 0.23 percent, respectively. Moreover, we find that one percent increase in non-renewable energy raises output directly by 0.49 percent. However, we show that the use of non-renewable energy has a downward pressure on the quality of institutions in Iran and hence have negative impact on output indirectly. More specifically, one percent increase using non-renewable energy decreases the index of institutional quality by 0.59 percent in Iran. This negative impact offsets the positive effect of using more non-renewable energy on GDP and hence lowers the growth rate. This finding highlights the importance of the institutional quality for enhancing the effect of non-renewable energy on output growth in Iran..
JEL Classification: O13, H54, Q32.
Institutional Quality, Non-Renewable Energy, Economic Growth, State-Space Model, Iran.
http://iiesj.ir/article-1-678-en.html
http://iiesj.ir/article-1-678-en.pdf
IIES
Quarterly Energy Economics Review
1735-1626
13
53
2017
9
1
Estimating the Optimal Rate of Risk Hedge and the Difference that Optimal Hedging Makes in the Natural Gas Market
35
60
FA
zahra
ansari ardali
alzahra university
Zansari1609@gmail.com
Y
mir hooseyn
musavi
alzahra university
hmousavi@alzahra.ac.ir
N
hamid
kordbacheh
alzahra university
h.kurdbacheh@alzahra.ac.ir
N
One characteristic of natural gas markets is frequent price swings, which create a price risk that needs to be managed through appropriate hedging strategies. This study attempts to estimate an optimal hedging option. We use the information provided by the stock exchange for future contracts of between one and four months for the period 2000-2016. We apply the OLS, VECM -GARCH and BEKK-GARCH methods to compare the risk born with or without hedging using futures contracts. We find that the use of futures contracts is justified. We notice that the longer the time frame of future contracts, dynamic models suggest an increased rate of hedging.
JEL Classification: A23, Q5, B22, T96
futures, hedge rate risk, effectiveness, econometric models OLS,
VECM -GARCH and BEKK-GARCH.
http://iiesj.ir/article-1-797-en.html
http://iiesj.ir/article-1-797-en.pdf
IIES
Quarterly Energy Economics Review
1735-1626
13
53
2017
9
1
Identification of Factors that Influence Iran\'s Provincial Energy Intensity Index: A Spatial Dynamic Panel Data Approach
61
103
FA
seif.1338@gmail.com
N
d.hamidi@tabrizu.ac.ir
Y
Among the important factors that cause differences in energy intensity between countries and amongst regions in a country is their geographical location. Inter-provincial and cross-country empirical studies can correctly model energy intensity by relying on spatial characteristics and eliminating estimation biasses. Energy intensity in Iranian province is influenced by such spatial factors as climate, size and existence of industrial poles. This study investigates the factors that affect the energy intensity index in Iranian provinces and estimates spatial autocorolation over the period 2000-2013. For this purpose, we estimate an emprical model using panel data and determine the relevant coefficients by applying spatial panel econometric techniques and the quasi-maximum likelihood (QMLE) method. Our model estimates the regional spatial elasticity of energy intensity to be 0.55. Therefore, to reduce energy intensity at the provincial level we need to act regionaly. The most important policy recommendations of this study for scholars and policymakers are detailed in the paper.
JEL Classification: Q43, R11, O14, C33.
Energy Intensity Index, Industrialization, Urbanization, Iran's provinces, Spatial Panel Econometric.
http://iiesj.ir/article-1-774-en.html
http://iiesj.ir/article-1-774-en.pdf
IIES
Quarterly Energy Economics Review
1735-1626
13
53
2017
9
1
An assessment of Environmental Efficiency of Selected Countries Based on Envelopment Data Analysis and Game Theory Under Competitive Conditions
105
133
FA
Bahram
Fathi
IAU
Bahram125fathi@gmail.com
N
Mahdi
Khodaparast Mashhadi
FUM
m_khodaparast@um.ac.ir
Y
Masuod
Homayounifar
FUM
homayounifar@um.ac.ir
N
Seyedhossein
Sajadifar
IAU
h.sajadifar@gmail.com
N
In recent years public attention to environmental issues has increased dramatically. Due to increasing concerns about environmental quality, climate change and environmental emissions, environmental performance has emerged as an important measure of sustainable development. The main objective of this study was to evaluate environmental performance in selected countries, using a combination of data envelopment analysis and game theory in a competitive environment, to calculate desirable and undesirable outputs in 2014. The results indicate that selected countries had an average environmental performance of 71.92 percent. This performance can be improved by 9.04 percent through optimizing output and 28.8 percent through more efficient use of inputs. Amongst the sample countries, Bahrain and Poland had the best performance. In addition, Argentina, Bahrain, Brazil, China, Indonesia, Kuwait, Nigeria, Poland, Qatar and Saudi Arabia were in a better position than other countries to improve their environmental performance given a symmetric relationship between desirable and undesirable factors under conditions of a game theory bargain.
JEL Classification: Q25, R22, A03, S9
Environmental efficiency, Data envelopment analysis, Cooperative game
http://iiesj.ir/article-1-732-en.html
http://iiesj.ir/article-1-732-en.pdf
IIES
Quarterly Energy Economics Review
1735-1626
13
53
2017
9
1
Evaluation of the Long-Term Relationship Between Crude Oil Prices, Gold Prices, House Prices and Exchange Rate in Iran Using the Structural Vector Error Correction Approach
135
164
FA
saeedkarimzadeh@yahoo.com
Y
naghmeh_honarvar@yahoo.com
N
This study examines the long-term relationship between oil prices, exchange rates, house prices and the price of gold in Rials over the period 1995 to 2012, using the structural vector error correction approach (svecm). Co-integration test results indicate the existence of a long-term relationship between the variables significant at 99% level. According to the definition of currency (dollars per Rial), the results of impulse response functions show that the local gold price shock has a negative effect on the exchange rate in the short, medium and long term. The housing price index shocks have negative effect on the exchange rate in the short, medium and long term. Crude oil price shocks have a positive effect on the exchange rate in the short, medium and long term. The study of the variance of results indicates that oil prices have the most significant impact on the variance in exchange rates, especially in the long term.
JEL Classification: A10, C10, C12, E40
: Long-term relationship, exchange rates, the price of gold, crude oil prices, house prices, structural vector error correction approach
http://iiesj.ir/article-1-715-en.html
http://iiesj.ir/article-1-715-en.pdf
IIES
Quarterly Energy Economics Review
1735-1626
13
53
2017
9
1
Study of Oil Refining Company Competitiveness through Measure of Products Support Indices - The case Study of Isfahan Refinery
165
184
FA
Naser
chavoshi
chawoshi54@gmail.com
N
saeed
Daei-Karimzadeh
saeedkarimzade@yahoo.com
Y
Iran has gained an opportunity for active presence on the global economic scene, with the recent lessening of sanctions following the Iran nuclear deal. To take advantage of market opportunities Iran needs to strengthen the competitive position of its industries. Appropriate supportive economic policies has to be bsaed on a sound understanding of the competitiveness of key industries. In this connection the oil industry is particularly important given its central role in the Iranian economy. In the study, we use a descriptive analytical approach to study the competitiveness of Isfahan refinery using the company’s latest financial statements for 2011-2012 to calculate the values of protection factors received by the company including nominal protection of products and inputs and effective protection rates of the three selected products of petrol, kerosene and gasoline. The results indicate that despite subsidized pricesn for inputs, restrictive economic policies means that the products do not receive any effective protection due to the burden of indirect taxes imposed on the company which cause the company to turn into a loss making enterprise. The continuation of current policies will seriously undermine the competitiveness of the oil industry in the post sanctinos era.
JEL Classification: F40, Z14
Protection factor, nominal protection factor of inputs, nominal protection factor of products, effective protection factor, Isfahan refinery
http://iiesj.ir/article-1-600-en.html
http://iiesj.ir/article-1-600-en.pdf
IIES
Quarterly Energy Economics Review
1735-1626
13
53
2017
9
1
The Influence of Different Methods of Royalty Calculation on Renegotiation Requests under Upstream Oil Investment Contracts
185
211
FA
diha61@gmail.com
Y
Abaskazemi@gmail.com
N
Payment of royalty by an international oil company (IOC) to a host government is one of the principal elements of fiscal regimes in upstream oil investment contracts like production sharing agreements. Unlike traditional methods, which were only based on value and production volume, the new methods of royalty calculation contain a combination of price, production volume and the profitability of an oil field. One bone of contention between parties in such a contract is the conditions under which a party can request renegotiation of the contract. In this study, we assess how royalty calculation methods can affect renegotiation requests. We see that the role of exogenous conditions in calculating royalty payments can justify a hardship situation through either a longer period of investment return for the foreign company (IOC) or a reduction in government income. We conclude that the need for contract renegotiation can be reduced through measures such as: applying the combinational methods of royalty calculation, exact determination of royalty rates, flexibility in royalty payment method and attention to the life cycle of a field at the moment of contracting.
JEL Classification: K12, M41, F21, Q49
Royalty, Royalty calculation methods, Upstream oil investment contracts, Renegotiation
http://iiesj.ir/article-1-704-en.html
http://iiesj.ir/article-1-704-en.pdf
IIES
Quarterly Energy Economics Review
1735-1626
13
53
2017
9
1
An Assessment of the Relationship between Hydrocarbon and Non-hydrocarbon Revenues in Petroleum Exporting Countries
213
233
FA
nazarifatemeh57@yahoo.com
Y
Economists are interested in the study of the relationship between tax revenues and oil revenues, due to the importance of tax revenues in funding the budget. The main purpose of this research is to study the relationship between hydrocarbon and non-hydrocarbon revenue of petroleum exporting countries using the panel data of the period 1998-2014. The results indicate a meaningful and negative relationship between hydrocarbon and non-hydrocarbon revenue.
JEL Classification: H2,C23,N7
Non- hydrocarbon revenue, hydrocarbon revenue, panel data approach
http://iiesj.ir/article-1-833-en.html
http://iiesj.ir/article-1-833-en.pdf