Ex-post analysis of energy subsidy removal through integrated energy systems modelling

V. Aryanpur, M. Ghahremani, S. Mamipour, M. Fattahi, B. ´O Gallach´oir, Payne Director Morgan D. Bazilian, and J. Glynn write about how energy subsidies can incentivise the overconsumption of energy resources and contribute to other economic or social distortions. In this paper, an ex-post analysis is presented that explores the extent to which electricity subsidy reform could have reduced Iran’s energy demand during the period 1984–2017. It also quantifies the techno-economic and environmental benefits that could have been achieved through such reforms.  January 15, 2022.