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The crisis of gasoline consumption in the Iran's transportation sector

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  • Houri Jafari, H.
  • Baratimalayeri, A.

Abstract

Fossil fuels have the greatest share in supplying the world's energy demands. Regarding the limited natural resources, fuel consumption management and energy planning in the end-user sectors are two great matters of importance. Among the fossil fuels, gasoline is the principal fuel for light-duty vehicles. In Iran, fuel consumption, especially that of gasoline, has increased sharply with the growth rate of 10.2% for the year 2006 in comparison with that in 2005, turning into a big crisis in the recent years. On the other hand, enormous subsidies for importing 40% of domestic demands, which have reached more than 10 billion US$, are too much to be supplied. In this study, we have assessed the gasoline consumption, production, import and prices; reviewed main causes of the tremendous growth rate of consumption, current conservation policies and their advantages or disadvantages (SWOT analysis); proposed short- to long-term solutions and strategies for efficient gasoline consumption management; and finally, current strategies and proposed solutions are analyzed and evaluated. A foregone conclusion strongly suggests that not only the low price of motor gasoline but also mass production of vehicles with the conventional technology, likewise, affects motor gasoline demand. A second conclusion is that gasoline crisis in Iran has no straight solution, and that fundamental strategies and policies are needed to solve the problem.

Suggested Citation

  • Houri Jafari, H. & Baratimalayeri, A., 2008. "The crisis of gasoline consumption in the Iran's transportation sector," Energy Policy, Elsevier, vol. 36(7), pages 2536-2543, July.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:7:p:2536-2543
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    References listed on IDEAS

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    1. Miremadi, Tahereh, 2020. "Coupling multilevel perspective with causal layered analysis on non-reflexive societies the case of socio-technical system of car fuel in Iran," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    2. Khadem Sameni, Melody & Barzegar Tilenoie, Amine & Dini, Niloofar, 2021. "Will modal shift occur from subway to other modes of transportation in the post-corona world in developing countries?," Transport Policy, Elsevier, vol. 111(C), pages 82-89.
    3. Sylvia Mardiana & Ferdinand Saragih & Martani Huseini, 2020. "Forecasting Gasoline Demand in Indonesia Using Time Series," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 132-145.
    4. Vahid Mohamad Taghvaee & Clever Mavuka & Jalil Khodaparast Shirazi, 2017. "Economic growth and energy consumption in Iran: an ARDL approach including renewable and non-renewable energies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(6), pages 2405-2420, December.
    5. Sadri, A. & Ardehali, M.M. & Amirnekooei, K., 2014. "General procedure for long-term energy-environmental planning for transportation sector of developing countries with limited data based on LEAP (long-range energy alternative planning) and EnergyPLAN," Energy, Elsevier, vol. 77(C), pages 831-843.
    6. Assareh, E. & Behrang, M.A. & Assari, M.R. & Ghanbarzadeh, A., 2010. "Application of PSO (particle swarm optimization) and GA (genetic algorithm) techniques on demand estimation of oil in Iran," Energy, Elsevier, vol. 35(12), pages 5223-5229.
    7. Dudlák, Tamás, 2018. "After the sanctions: Policy challenges in transition to a new political economy of the Iranian oil and gas sectors," Energy Policy, Elsevier, vol. 121(C), pages 464-475.
    8. Mohamad Taghvaee, Vahid & Parsa, Hojat, 2015. "Economic growth and environmental pollution in Iran: evidence from manufacturing and services sectors," MPRA Paper 67885, University Library of Munich, Germany.
    9. Hajjari, Masoumeh & Tabatabaei, Meisam & Aghbashlo, Mortaza & Ghanavati, Hossein, 2017. "A review on the prospects of sustainable biodiesel production: A global scenario with an emphasis on waste-oil biodiesel utilization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 445-464.
    10. Qiguo Gong & Limin Rong & Hui Wang, 2019. "China?s Manufacturing Strategy Choice: An Integrated Strategic Analysis Framework Combining SWOT and Logical Growth Models," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(11), pages 1290-1305, November.
    11. Mohamad Taghvaee, Vahid & Hajiani, Parviz, 2014. "Price and Income Elasticities of Gasoline Demand in Iran: Using Static, ECM, and Dynamic Models in Short, Intermediate, and Long Run," MPRA Paper 70054, University Library of Munich, Germany.
    12. Ghorbani, Afshin & Rahimpour, Hamid Reza & Ghasemi, Younes & Zoughi, Somayeh & Rahimpour, Mohammad Reza, 2014. "A Review of Carbon Capture and Sequestration in Iran: Microalgal Biofixation Potential in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 73-100.
    13. Sehatpour, Mohammad-Hadi & Kazemi, Aliyeh & Sehatpour, Hesam-eddin, 2017. "Evaluation of alternative fuels for light-duty vehicles in Iran using a multi-criteria approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 295-310.
    14. Shekarchian, M. & Moghavvemi, M. & Zarifi, F. & Moghavvemi, S. & Motasemi, F. & Mahlia, T.M.I., 2017. "Impact of infrastructural policies to reduce travel time expenditure of car users with significant reductions in energy consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 327-335.

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