Analyzing Environmental Impact of Energy Audits in Iran Using a Computable General Equilibrium Approach

• Published in: Iranica journal of energy & environment 2025, Vol.16 (1), p.164-177
• Main Author: Ashofteh, H.
• Format: Article
• Language: English
• Subjects: computable general equilibrium method; energy audit; environment; sustainable development
• ISSN: 2079-2115; 2079-2123
• DOI: 10.5829/ijee.2025.16.01.17

Energy plays a pivotal role in economic development, yet achieving sustainable growth requires a balance between economic prosperity and environmental preservation. While past studies have concentrated on overall energy consumption efficiency and rebound effects, this study aimed to delve into the impacts of energy management enhancements within the five sectors (Agriculture, Transportaion, buildings, services, industry), with a specific focus on economic and environmental aspects. This study employed the Computable General Equilibrium (CGE) method and the social accounting matrix table to analyze various scenarios across industry, agriculture, and household sectors. Different levels of actions, ranging from limited to macro, were assessed within the framework of energy audits, with a specific emphasis on environmental concerns. Limited actions necessitate a 100% increase in initial investment, basic actions require a 200% increase, and macro measures involve a 400% increase. Discoveries from the Gams software highlight the financial viability of boosting energy efficiency to propel sustainable progress, leading to decreased energy requirements and CO2 emissions. The study indicates that shifting from basic to macro energy investments can successfully mitigate fossil fuel usage and carbon emissions, paving the way for a greener future.