The effect of energy price reform on production costs in Iran’s industries

The main purpose of this paper is to study the effect of energy prices reform on production costs in various Iranian industries. In doing so, researchers use the input–output approach on the basis of energy table of 2006. In this framework, two scenarios (the price of energy carriers in 2010 and predicted energy price based on FOB price in 2016) in two stages (direct and indirect effect of those mentioned scenarios) have been employed. ; The results of the direct effects of applying the first scenario at the first stage show that the production costs will increase more in the brick, cement, transport, storage and communications sectors. In this scenario, the highest direct and indirect effects in production costs were recorded in brick industry with a 46.51 percent increase. Moreover, the direct effects of the second scenario suggest the highest increase of production costs in the brick, cement, tile and ceramics sectors with the brick having a 94.05 percent increase- the highest in terms of direct and indirect effect.;