Investigating The Energy Resilience of Iran and Selected Neighboring Countries: The Multi-Region Input–Output Linear Programming Models

Document Type : Original Article

Authors

1 Associate Professor of Economics, Faculty of Management and Economics, Shahid Bahonar University of Kerman, Kerman, Iran

2 Associate of Economics, Faculty of Management and Economics, Shahid Bahonar University of Kerman, Kerman, Iran

3 MA in Energy Economics, Faculty of Management and Economics, Shahid Bahonar University of Kerman, Kerman, Iran

10.29252/jem.2023.230294.1817

Abstract

The topic of energy resilience has been noticed a lot in recent decades. Resilience refers to ability of the system to face intense disturbances with a low probability of occurrence. A system is resilient, where it can de facto absorb the temporary or permanent risks and adjust itself with rapidly changing positions of the economy without losing its efficiency factor. In this study we propose a multi- region input–output model to study the energy resilience of several multi-country economies in the year of 2014 with accounts for the inter-sectoral and inter-regional dependencies in the economic structure. The model computes the impacts of random energy production disruptions on the entire multi-regional input–output system in the form of final demand deficits. The results show that when the supply of electricity decreases, the sector's demand for other energy carriers increases, it means, it substitutes these energy carriers with electricity. But Generally Other energy carriers are not suitable substitutes for all economic sectors. We also observed that in the case of trade between countries, the occurrence of a shock in one region is covered by other regions therefore cooperation among regions can improve the individual and collective energy resilience significantly.

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References

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