Investigating the Impacts of Changeable Policies with Climate Change on Iran’s Agricultural Sector

Document Type : Research Paper

Authors

1 Department of Agricultural Economics, University of Sistan and Baluchestan, Zahedan, Iran

2 Department of Economics, University of Sistan and Baluchestan, Zahedan, Iran

Abstract

In recent decades, climate change has been one of the most discussed and debated topics, and given its significant impact on the agricultural sector, the primary concern of policymakers in different countries is how to address this phenomenon in the agricultural sector within the context of emission reduction and adaptation. Accordingly, the current study investigated the effects of changeable policies on climate change in Iran’s agricultural sector by enhancing technology and energy consumption efficiency, which is one of the emission reduction policies. To this end, Iran’s economy is divided into agricultural and non-agricultural sectors, and based on the relationships between these two sectors and the dynamic stochastic general equilibrium (DSGE) approach within the New-Keynesian framework, two scenarios of technology improvement and energy efficiency improvement in the agricultural sector are developed. The results revealed that as a result of technological advancements and increased energy consumption efficiency in the agricultural sector, the price index has decreased, while production, real labor wages, investment, and capital stock have increased. Therefore, it is recommended that planners and policymakers take measures such as increasing the financial power of agricultural producers, bolstering the insurance of agricultural products and the prosperity of the insurance market, and creating favorable conditions for attracting labor with technical knowledge and high-level skills to develop the agricultural sector’s technology infrastructure. In addition, since energy is relatively inexpensive in Iran compared to other countries, this vital input in the production process is frequently underutilized.

Keywords

Main Subjects

References

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Iranian Economic Review
Volume 29, Issue 3 - Serial Number 3
September 2025
Pages 982-1011

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