A SYSTEM DYNAMICS MODEL FOR ANALYZING IRAN’S ENERGY-ECONOMY SYSTEM

Author

School of Management and Economics, Sharif University of Technology

Abstract

This paper, develops a system dynamics energy-economy model the basis of Mashayekhi’s dynamic model which was built in 1978 for addressing Iran’s socioeconomic system.
The energy sector in new model includes eight sub sectors which their interactions with the base model’s sub-sectors exhibit a powerful and robust feedback system for analyzing Iran’s energy-economy as a whole.
The paper’s results show that improving system’s behavior requires applying some policies simultaneously including: 1) allocating a higher share of natural gas produced domestically to inject into the oil wells; 2) economizing domestic energy consumption and restricting energy imports; 3) increasing investments in gas distribution and consumption facilities in order to rise its domestic market share; 4) endeavoring to ameliorate Iran’s international political relationships.

Keywords