Document Type : Research Paper
Authors
1
Associate Professor, Department of Economics, Shahid Bahonar University of Kerman, Kerman, Iran
2
Professor, Department of Economics, Shahid Bahonar University of Kerman, Kerman, Iran
3
M. Sc. Graduate, Energy Economics, Bahonar University of Kerman, Kerman, Iran
Abstract
Renewable energies have become a major substitute for fossil fuel energy sources. It has important advantages such as decreasing the dependence on foreign oil imports, providing additional markets and creating job opportunities. An examination of the current structure of Iranian industrial sector reveals the fact that with the exemption of food and beverage industries, the major Iranian industrial sub-sectors are based on oil, gas and minerals industries. In this study, 22 industries are studied amongst the industrial workplaces. In addition, two nonpolluting inputs, i. e., capital and labor and two polluting energy inputs including nine different types of energies, i. e., gasoline, gas oil, kerosene, residual fuel oil, LPG, charcoal, coal, natural gas, and electricity together with the pollutant input which is the carbon dioxide are studied in the production process. We have used the Translog Cost Fuction in the modeling of inputs. Having the model estimated using the SUR sumultaneous equations, five types of elasticity of substitution including inputs own elasticity, cross elasticity, Allen, Morishima, and McFadan shadow elasticities are calculated and the input relationships are investigated. The results show that the capital input is substitutable with all the considered inputs, the labor input substitutalbe with all the other inputs except for the complementary polluting input. And finally, the polluting inputs have an inter-complementary relation.
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