Environmental cost of energy consumption and biodiesel as a solution (case study: Iran)

Abstract

More than 8.5 million people live in Tehran, the capital of Iran, with 111 pollutant days during 2016. Based on Iranian 2016 energy balance sheet, more than 76% of SPM was emitted by gas oil combustion. To determine the main pollutant fuel-consuming sector, the amount of gas oil consumption and SPM production are investigated. Therefore, the transportation and power plant sectors are determined as the main gas oil users with 51.1% and 30.5% of its total consumption. Next, the reduced external cost of implementing biodiesel instead of gas oil for mobile and fixed sources is deliberated. Finally, by comparing the external cost of gas oil consumption and Iran's gross domestic production in 2016, it is revealed that by replacing gas oil with biofuels, 3.935 billion dollars (0.95% of gross domestic production of Iran in 2016) can be reduced.

Keywords

• air pollution
• spm
• biodiesel
• gdp
• external cost