Estimation of Environmental Pollutants Shadow Price Resulting from Fossil Fuel Use in Different Economical Sectors Case study: Tehran Province

Subject Areas : environmental management

Mir Hosein Mousavi ¹ ( Assistant Professor , Faculty of Economy, University of Alzahra )
Narges Barzegar ² ( دانشجوی دکتری، رشته توسعه اقتصادی و برنامه ریزی ، دانشگاه الزهراء*(مسئول مکاتبات) )
Abbas Memarzade ³ ( Associate Professor, Environmental Faculty-University of Tehran )

Received: 2013-07-25 Accepted : 2014-01-08 Published : 2014-12-22

Keywords: EPA coefficients, Externality, Environmental Pollutants, and fossil fuel,

Abstract :

AbstractIntroduction: The economical sectors, being a main consumer of fossil fuels, play a basic role in theEmission of environmental pollutants. In the process of giving service, these sectors createUndesirable outputs, in addition to desirable ones. The cost of this polluting behavior, and also thescarcity of appropriate analytical methods for the purpose of environmental policy making, someefforts have been made. In this paper, to estimate shadow price of environmental pollutants created byfossil fuel consumption in the economical sectors of Tehran province.Material & Methods: The used methodology in this paper is input-output analysis and EPAcoefficients.Results: Results show that economic sectors include transportation sectors to create23548850629RSL social cost , service 88533443280 RLS, agricultural 74716821840 RLS andindustry7269567240 RLS among economic sectors of Tehran have the most shadow prices of environmentalpollutants resulting from fossil fuel respectively.Discussion : Considering the global movement towards sustainable development, it is essential tonotice to the environmental destruction caused by different economical sectors. The results show thatmost of the social costs of air pollutants examined in this study due to the use of gas to the price of796 RLS per liter consumption in the transportation sector, and the lowest induced kerosene to cost196 RLS per liter is consumed.

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