consumption in agriculture (Morady et al. 2014).
4
Figure 2 displays electricity consumption and
groundwater extraction in Iran during the last
40 years. As we can see, in spite of the increase in
energy consumption and the number of wells (as
shown in Fig. 1), the total volume of groundwater
extraction has started to decline. This decline may
be a reflection of the devastating condition of
groundwater resources.
Few studies have analyzed the effects of
energy subsidies on rural and urban households’
welfare. These studies mainly focus on the
reforms of pricing policy. Using 2001 data,
Heidari and Parmeh (2011) anticipate a reduction
in purchasing power between 16–19% for rural
households and 18.5–22% for urban households
due to energy subsidy elimination. In another
study, by using a 2011 social accounting
matrix, Mazaheri and Khiayabani (2017) foresee
a 10.6–11.11% reduction in purchasing power
for rural and urban households on average as a
result of a 100% increase in energy prices.
One of the main consumers of energy in Iranian agriculture is irrigation water pumping in
general, and groundwater pumping in particular.
The latest estimations from 2014 show that water
pumping accounts for 70% of electricity consumption in agriculture (Bagherzadeh 2017).
During the last 40 years, different governments
have implemented numerous support programs
for the agricultural sector, with cheap energy
provision being one of the central components.
Prior to the attempt to phase out energy subsidies
in 2010, electricity tariffs for agriculture followed
a complicated pattern that was substantially
simplified afterwards. The sector has been supported by a special tariff that is much lower than
the electricity tariff for industrial and domestic
consumption, the provision cost, or the price of
electricity on the regional electricity market.
Based on the announcements from Iran’s MOE
Fig. 2 Trend of groundwater extraction for irrigation and other uses and electricity consumption from agriculture during
the last 40 years Source Iran Energy Balance Sheets 1973-2013 (MOE), Water Base Study Organization 2016 (IWRM)
4
As the focus of this study is not gasoline, we mainly
discuss electricity in this paper.
The Energy-Water Nexus in Iran …
113
4
Figure 2 displays electricity consumption and
groundwater extraction in Iran during the last
40 years. As we can see, in spite of the increase in
energy consumption and the number of wells (as
shown in Fig. 1), the total volume of groundwater
extraction has started to decline. This decline may
be a reflection of the devastating condition of
groundwater resources.
Few studies have analyzed the effects of
energy subsidies on rural and urban households’
welfare. These studies mainly focus on the
reforms of pricing policy. Using 2001 data,
Heidari and Parmeh (2011) anticipate a reduction
in purchasing power between 16–19% for rural
households and 18.5–22% for urban households
due to energy subsidy elimination. In another
study, by using a 2011 social accounting
matrix, Mazaheri and Khiayabani (2017) foresee
a 10.6–11.11% reduction in purchasing power
for rural and urban households on average as a
result of a 100% increase in energy prices.
One of the main consumers of energy in Iranian agriculture is irrigation water pumping in
general, and groundwater pumping in particular.
The latest estimations from 2014 show that water
pumping accounts for 70% of electricity consumption in agriculture (Bagherzadeh 2017).
During the last 40 years, different governments
have implemented numerous support programs
for the agricultural sector, with cheap energy
provision being one of the central components.
Prior to the attempt to phase out energy subsidies
in 2010, electricity tariffs for agriculture followed
a complicated pattern that was substantially
simplified afterwards. The sector has been supported by a special tariff that is much lower than
the electricity tariff for industrial and domestic
consumption, the provision cost, or the price of
electricity on the regional electricity market.
Based on the announcements from Iran’s MOE
Fig. 2 Trend of groundwater extraction for irrigation and other uses and electricity consumption from agriculture during
the last 40 years Source Iran Energy Balance Sheets 1973-2013 (MOE), Water Base Study Organization 2016 (IWRM)
4
As the focus of this study is not gasoline, we mainly
discuss electricity in this paper.
The Energy-Water Nexus in Iran …
113