Tarbiat Modares University Journal of Agricultural Science and Technology 1680-7073 19 3 2017 05 01 Liberalizing Energy Price and Abatement Cost of Emissions: Evidence from Iranian Agro-Environment 511 523 16012 EN S. H. Mosavi Department of Agricultural Economics, Faculty of Agriculture, Tarbiat Modares University, Tehran, Islamic Republic of Iran. A. Alipour Department of Agricultural Economics, Faculty of Agriculture, Tarbiat Modares University, Tehran, Islamic Republic of Iran. N. Shahvari Department of Agricultural Economics, Faculty of Agriculture, Tarbiat Modares University, Tehran, Islamic Republic of Iran. Journal Article Iran is one of the most energy-rich countries subsidizing energy carriers, especially in the agricultural sector, to the extent that the resulting growth is at the expense of the environment. This study tries to investigate the potential impacts of energy price reform on the agro-environment, based on the Marginal Abatement Costs (MACs) of emissions. Firstly, the energy demand function of the agricultural sector and the probable reaction of inputs and outputs to the reform were estimated. Then, using an Input Distance Function (IDF), the country and provincial-wide MAC were simulated through counterfactual reform scenarios. The results indicated that energy price reform would increase the MAC of emissions and socio-environmental benefits. However, the reform adversely affected the income of farmers. Also, the results provided detailed information both at a nationwide and provincial scale. Finally, it was recommended to implement complementary policies alongside reforms to compensate for the reduction in farmers’ income. https://jast.modares.ac.ir/article_16012_82cbf6c40bb43fb0df95defe85f4e938.pdf