The impact of the Iranian energy subsidy reform on the emissions of the manufacturing sector- An exploratory analysis

The assessment shows that the energy subsidy reform has not changed the level of energy consumption, but manufacturing firms switched to a cleaner energy mix in the form of a larger share of natural gas and electricity in response to the change in relative prices of energy.

As a result, after the energy subsidy reform, the direct emissions of man-ufacturing firms (both air pollutants and 𝐶𝑂2) declined. The coke and pe-troleum products industry largely contributed to this emission reduction. However, these encouraging findings do not hold when the emissions re-sulting from electricity generation are included.