Investigating the Role of Economic Policies on the Utilization of New Energy in Iranian Power Plants (Case Study: Subsidy Policies, Pricing, and Cost Reduction)

Energy is considered as one of the most urgent and critical requirements of development.The high demand for energy from fossil fuels makes economic growth easy, but the current energy system is not sustainable due to its negative effects on the environment and human life. Sustainable development has been defined as a development that will provide the needs of the present generation without compromising the ability of future generations.The purpose of this study was to investigate the role of government's economic policies in controlling the environmental pollution of power plants with a view to achieving sustainable development.The study period in this study is 1374-1394 and its simulation is planned until 1407. For this purpose, the system dynamics method has been used. The dynamic system can display the most important economic-energy-environmental sub-systems seamlessly.The simulation results indicate that all three examined policy instruments (subsidies for new energy sources, rising fossil fuels prices and cost polic of new energies) were effective on increasing the production capacity of new energies and decreasing production capacity of fossil energies, and among these, the policy of reducing costs for developing of new energies has had the greatest impact.There is also a direct relationship between the production capacity of new energies and sustainable development and reverse relationship between the production capacity of new energies and greenhouse gas emissions.