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An AHP decision making model for optimal allocation of energy subsidy among socio-economic subsectors in Iran

Authors
Journal
Energy Policy
0301-4215
Publisher
Elsevier
Volume
45
Identifiers
DOI: 10.1016/j.enpol.2011.12.045
Keywords
  • Energy Subsidy
  • Analytical Hierarchy Process
  • Socio-Economic Subsectors
Disciplines
  • Economics

Abstract

Abstract This paper presents an analytical hierarchy process (AHP) decision model for sectoral allocation of energy subsidy based on several criteria. With determination of priorities for these criteria through questionnaire and AHP method, the overall rank of these criteria that have the most influence on distribution of energy subsidy among socio-economic sub-sectors, are as the following: inflation, economic growth, labor intensity, distribution of energy subsidy among socio-economic levels, energy intensity and social cost of air pollution. According to the model, the first priority for allocation of energy subsidy is commercial sector and the last priority is related to transportation sector. Investigating the impact of changing priority of the criteria on overall results indicates that the socio-economic sub sectors’ ranking in receiving subsidy have little sensitivity for changing priority of the subsidy criteria.

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