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Iran - Energy : Environment Review Policy Note

ENERGY SECTOR REFORM ENVIRONMENTAL DEGRADATION FUEL OIL FUEL PRICES POLICY REFORMS SECTORAL PLANNING REGULATORY FRAMEWORK PRICE SUBSIDIES ENVIRONMENTAL MANAGEMENT FINANCIAL MANAGEMENT CASH FLOW ENERGY USE NATURAL GAS ENVIRONMENTAL ASPECTS ENERGY SECTOR REFORM ENVIRONMENTAL DEGRADATION FUEL OIL FUEL PRICES POLICY REFORMS SECTORAL PLANNING REGULATORY FRAMEWORK PRICE SUBSIDIES ENVIRONMENTAL MANAGEMENT FINANCIAL MANAGEMENT CASH FLOW ENERGY USE NATURAL GAS ENVIRONMENTAL ASPECTS AGED AIR AIR POLLUTION AIR POLLUTION CONTROL AIR QUALITY ALTITUDE BENEFIT ANALYSIS BIOMASS CARBON CARBON MONOXIDE CITIES CLEAN DEVELOPMENT MECHANISM CLEAN TECHNOLOGY CLIMATE CLIMATE CHANGE CO COMBUSTION COST BENEFIT ANALYSIS COST-BENEFIT ANALYSES CPI CRUDE OIL DECISION MAKING DEFORESTATION DRAINAGE DRAINAGE WATER ECONOMIC DEVELOPMENT ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIC PROBLEMS EFFECTIVE USE EMISSION REDUCTION EMISSIONS EMISSIONS REDUCTION ENERGY BALANCE ENERGY CONSERVATION ENERGY CONSUMPTION ENERGY DEMAND ENERGY EFFICIENCY ENERGY POLICY ENERGY SUPPLY ENVIRONMENTAL DEGRADATION ENVIRONMENTAL IMPACTS ENVIRONMENTAL ISSUES ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL POLICIES ENVIRONMENTAL POLICY ENVIRONMENTAL PROBLEMS ENVIRONMENTAL PROTECTION ENVIRONMENTAL RESOURCES EXCHANGE RATE FRAMEWORK CONVENTION ON CLIMATE CHANGE FUELS GDP GLOBAL CLIMATE CHANGE GREENHOUSE GASES GROUNDWATER HAZARDS HOUSING HUMAN HEALTH HYDROCARBONS INCENTIVE SYSTEMS INCOME INDUSTRIAL POLLUTION INFLATION INFORMATION DISSEMINATION INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE INTERVENTION KYOTO PROTOCOL LABOR PRODUCTIVITY LAND DEGRADATION LAWS MARKET PRICES MEDIA MINES NATURAL DISASTERS NATURAL GAS NATURAL RESOURCES NUCLEAR ENERGY OIL OIL PRICES OPEC OPPORTUNITY COSTS PETROLEUM PHOTOVOLTAICS POLLUTERS POLLUTION POLLUTION CONTROL POTENTIAL IMPACTS PRESSURE PRIVATE SECTOR PRODUCTIVITY PROGRAMS PROJECT PREPARATION PUBLIC SECTOR PURCHASING POWER QUALITY OF LIFE RENEWABLE ENERGY RENEWABLE RESOURCES RESPIRATORY DISEASES RIVERS SAFETY SAFETY MEASURES SAVINGS SOIL STRUCTURES SUSTAINABLE DEVELOPMENT SUSTAINABLE EXPLOITATION SUSTAINABLE GROWTH TAXATION TOOLS TRANSPORT UNEMPLOYMENT UNEP URBAN DEVELOPMENT VOC WASTE WATER QUALITY WATER SUPPLY WHO WORLD HEALTH ORGANIZATION
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Washington, DC
Middle East and North Africa | Iran, Islamic Republic of
2013-07-08T16:07:54Z | 2013-07-08T16:07:54Z | 2004-05-21

This Policy Note is based on the Final Report of the Environmental Energy Review (EER), prepared over two years, with the full collaboration of the Government of Iran, and the assistance of international, and national consultants. The EER report comprises: an analysis of the current situation with regards to energy generation, and use; an evaluation of the growth prospects with regard to energy generation, and use; the identification of the environmental issues induced by the generation, and use of energy, and the cost estimates of damages; the evaluation of the extent of contribution to the climate-change phenomenon, through emission of greenhouse gases; the evaluation of the proposed mitigating measures for previously identified environmental problems; conclusions and recommendations; and, a proposal for an action plan. The emphasis of the EER is on air pollution, being the most extreme, visible sign of environmental damage, certainly in the large cities. The major source of air pollution is the energy sector, key to the Iranian economy, and, the main engine of future economic growth, though a principal cause of environmental pollution, and a major source of market distortion. The challenge therefore is to recommend the necessary policy reforms and sectoral measures that will substantially reduce damage costs, in the case that no reform or measures are introduced. In order to better define the options, and their impacts, a total of twelve scenarios were analyzed, characterized by a combination of four price reform scenarios, and three different sets of measures. Major conclusions from this analysis suggest rapid price reform, as a strategy for the environment, through a combination of price reform, plus appropriate sectoral measures. If price reform is delayed past 2009, then the country can improve its financial cash-flow by providing financial incentives to the efficient use of energy, and to the substitution of fuel-oil by natural gas, avoiding subsidies, and instead fund other environmental control measures, where the costs are not easily assigned to the polluter. The policy note also proposes an Action Plan to implement the main sectoral policies described above.

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