an analysis of macroeconomic responses to energy price reforms along iran’s decarbonization path: a computable general equilibrium (cge) modeling approach

This study examines the economic and environmental impacts of aligning the domestic prices of natural gas, fossil fuels, and renewable electricity in iran with international standards. using the dynamic computable general equilibrium (cge) model, a comprehensive assessment of the impact of energy price reforms on economic growth, trade balance, welfare, relative prices and carbon emissions is provided. given the lack of cge model-based studies in the field of energy policy in iran, this research fills the existing gap by simultaneously examining the economic and environmental impacts of energy price reforms. in this research, two distinct policy scenarios have been simulated over different time horizons and in various sectors to provide precise insights into sectoral balances and long-term policy outcomes. the results emphasize the necessity of transitioning to a sustainable energy system, a transition that requires extensive investments in renewable energy infrastructure (especially solar and wind) with targeted subsidies and financial incentives. complementary measures include improving energy efficiency in high-consumption sectors through low-consumption technologies and modernizing the agricultural sector using clean energy to reduce dependence on fossil fuels and decrease greenhouse gas emissions. implementing these strategies can lead to reduced energy price volatility, increased economic resilience, and achieving sustainable growth in iran.