A review on Iran’s Transportation History and its recent energy demand Issues
Dr.Fereydoun Verdi Nejad
University of Tehran, Faculty of Management
Yasaman Gorji
MBA student at University of Tehran & Energy issues expert and analyser
Abstract:
Iran has long been involved in the transportation issues. The unique geopolitical location of Iran functioned as a bridge connecting the Orient and the Occident and provided merchandisers and globetrotters with countless opportunities in the domains of economic and socio-cultural interaction.
The renowned Silk Road passed via Iranian territory from the beginning of its establishment in the latter half of the 2nd century B.C. up until the early days of the 20th century. And today as urban growth continues in Iran encompassing many of the secondary Cities, the stress on urban systems and on urban liability can be expected to grow markedly. Transportation is vital to the dynamism of a City and the well being of its citizens, without access to good passenger and freight transportation services, economic development stalls.
And now Transport sector consumes about 50 percent of oil demand in the world and is considered as an important sector for incremental oil demand in the future. This sector in Iran consumed about 52 percent of oil demand in 2005. The huge level of oil demand and the high annual growth rate in Iran are fuelled by many fiscal policies, structural and infrastructural factors.
The vehicle ownership(intensity), efficiency of vehicles, public transportation, transport infrastructure, per capita income, cost of vehicle use, fuel price, are among the factors which are shaping the trend of oil demand in this very important sector and road transportation contributes more than 80 percent of oil demand in transportation sector.
The economic impact of such congestion can be substantial. Not only does congestion have an impact on economic development, but also it exacerbates air quality and energy consumption problems as well. They are also the most rapidly growing source of greenhouse gas emissions, including carbon dioxide, chlorofluorocarbons, nitrous oxide and carbon monoxide in the region. With road infrastructure continually lagging the growing in number of vehicles on the road, speeds in urban areas have consistently dropped, especially in the city centers. Lower travel speeds and frequent stops and starts produce greater fuel consumption, and greater emissions of noxious substances than freely flowing traffic. This Paper Aims to deliver a brief review on the history of transportation in Iran and the fast-paced growing demand of energy consumption in this sector. Along with uncovering the traffic congestion challenges and its numerous side effects which government faces. Keywords: Iran, Transportation, Energy, Vehicle intensity, History
1. Introduction
Since human beings created the wheel and started to move objects by the wheel, the importance of transportation as one of the pillars helping every organization with its missions has become evident to all. Basically, transportation is a general process which influences the organization and is influenced by it. Its relationship to all ranks in an organization has made it one of the most important components of every organization without which no organization can survive.
Today, transportation is an important economic system because movement of goods and services (products) is similar to the blood circulation process and just in the same way that any vascular problem will reduce physical abilities of human body, any problem with transportation will compromise capabilities of organizations and economic systems.
Development of transportation has many aspects, so that, it both paves the way for progress of organizations and prosperity of economy. Misuse of transportation will lead to consumerism, environmental pollution as well as economic losses in the form to time and capital waste.
Evolution of the complex industry of transportation should be studied in parallel to history of human civilization including social, economic and technological developments and changes in lifestyle.
We will first have a look at the history of transportation in Iran up to the present time. Afterward a comparison on Iran’s and the world’s transportation fleet and car ownership per 1,000 people in Iran and other countries will be presented, which can delineate growth of oil demand for transportation sector. Among other factors affecting rapid growth of cars is growing per capita income, whose trend has been explained both for Iran and other countries.
2. History of transportation in Iran
Studies on historical objects unearthed at Kashan’s Sialk hill and comparing them to objects found in Shoush and other areas of the Persian Gulf, reveal amazing facts about artistic and industrial achievements in various cities on the Iranian plateau dating back to prehistoric eras.
Inscriptions on pottery found in Sialk are very much similar to those in Shoush and indicate that they have been moved from one spot to another.
The famous royal road was built by Iranian engineers at the time of Darius, which ran from Shoush to Saard and the famous Silk Road was the most important road from the time of Ashkanid to when Vasco da Gama discovered the Cape of Good Hope. Also, it was the Median people who used horses and invented chariots.
Studies carried out by Roman Girshman (famous archeologist); show that there have been three major trade routes under Ashkanid kings:
1. A road running from Estakhr to Kerman, Kermania and Sistan which continued on to India;
2. A road starting on the shores of the Persian Gulf, which reached Solukiyeh along the banks of Tigris River and continued to Dora, a trade hub in Syria, before reaching the coasts in Lebanon. From there, freighters carried goods to Greece. In this way, there was a continuous trade route from the Persian Gulf to the Mediterranean and Aegean Sea;
3. The Solukiyeh Road (Tisfun) which crossed Ekabatan and Damghan (Sad Darvazeh) before reaching Marv in Turkistan and moving on to China. It was later turned into a segment of the Silk Road. Caravans of camels and mules carried animal hide, textile and wooden artifacts in addition to animals, birds, rice, saffron, spices, precious stones, tar and oil from Iran in return for metal objects, bronze objects, paper, glass, pottery, paints and steel which were carried from China and India to Iran. In the first and second centuries before Christ a trade route started in China and continued to Marv, Sad Darvazeh (Damghan), Hamedan (Ekbatan) and finally to Solukiyeh. Chinese silk was taken to Iran, Syria and Egypt along the same route.
Therefore, Iran has been a center for trade among civilized nations of that time since many years ago due to its location as a major hub connecting Asia to the Mediterranean and the Black Sea. It was also a center of civilization and has gained precious experiences in world trade.
At the time of Alexander, however, trade routes crossing the Persian Gulf were compromised because they preferred Suez to Iran. The Romans then started to use the Iran route once more and after some years of stagnation, Iran’s foreign trade become prosperous. After the Roman Empire declined, Europe’s trade with the Orient was damaged, but then some European nations (especially Italians) paid renewed attention to Iran including merchants from Genoa and Pisa.
At that time, Iran was not just a link between Europe and the East, but was also a party to trade with them. A high quantity of goods was sold to tradesmen and since Iranians were rich, they also bought a lot of things. In this way, Iranians followed by Romans and then Italians were major peoples who paid attention to international transportation, made roads for caravans, established border checkpoints and collected port duties.
Iranian routes declined in importance only after the Portuguese sailor, Vasco da Gama, discovered the Cape of Good Hope in 904 AH (1497 AD). Since that time, trade through Iran declined and was limited to articles which were in demand in Iran. Silk, wool and precious stones were the first goods to be carried by caravans through Iran to Europe and most of them were carried by camels to seashores where they were taken to Europe aboard ships. In return, goods needed in Iran were bought. In early 20th century, oil discovery attracted a lot of attention to the Persian Gulf and Iran became a focal point for plots hatched by international conspirators.
They were well aware of the importance of communications and knew that without road and transportation means, they would not be able to expand their exports to Iran. Therefore, tradesmen started to establish railroads and shipping lines, collecting hefty profits in the meantime while paving the way for export of goods to Iran and taking preliminary steps to create international transportation in the country.
3. History of transportation from 100 years ago up to the Islamic Revolution
Structural changes in Iranian transportation system started about a century ago. A decree by Amir Kabir (chief minister under Nasereedin Shah, The Ghajar dynasty) in 1898 for the establishment of a navy was the beginning of new transportation in the country. In 1906 and late in Qajar rule, a ministry of public utilities was in charge of all affairs related to agriculture, trade, industry and roads. Historical documents show that the general department of roads in that ministry has been the first official establishment for transportation in the history of Iran.
In 1922, a military air transport office was established and served as a forerunner to modern sea, road and air transportation. In 1930, the roads and streets department was separated from the ministry of public utilities and was established as a new ministry.
In 1935, a general department of ports and the state-run railroads were established. In 1936, the ministry of roads and streets was renamed to the Ministry of Roads with a department called cargo transportation department.
During those years laws and regulations were passed and enacted for transportation, including the civil law of 1926 which determined duties of transportation authorities for protection of what was entrusted to them. In trade law passed in 1932, articles 377 and 394 were about transportation. A glance at those rules and regulations will reveal that the main goal of establishing the ministry of roads and streets was to build and maintain rail and dirt roads and to develop shipping and port affairs. The cargo transportation department was established to coordinate transportation affairs.
In 1949, the General Department of Civil Aviation was established followed by the Ports and Shipping Organization in 1960. In 1968, establishment of Iran Air was another major development in the country’s transportation sector.
In 1974, the act for renaming the ministry of roads to the Ministry of Roads and Transportation was passed. In 1978, the Civil Aviation Organization was transferred from the Ministry of War to the Ministry of Roads and Transportation. In 1980, secretariat of the High Council for Coordinating Transportation was eliminated. Then the Coordination and Supervision Department was merged with the Provincial Affairs Department to form a new department at the Ministry of Roads and Transportation known as Roads Maintenance and Transportation Department.
4. Transportation after the Islamic Revolution
Here, major changes in transportation policies following the 1979 victory of the Islamic Revolution will be reviewed.
A) From 1978 to 1988: During that period, transportation was a means of implementing other policies and there was no economic approach to transportation. During the Iraqi imposed war (1980-88), road transportation was a means of implementing defense policies while, on the other side, serving as a means of implementing regional industrial and especially social policies.
Following enforcement of the law for renaming the ministry of roads and transportation, the most important development related to road transportation happened in 1982 when a road transportation department was established with five transportation offices in charge of transportation planning and contracts as well as traffic standards and regulations for transportation.
B) From 1988 to 1994: In 1988, a new department of planning and coordination was established at the Ministry of Roads and Transportation on the joint proposal of the Ministry of Roads and Transportation and the Administrative and Employment Affairs Organization which was supposed to enforce the government’s sovereign rights in road transportation. After combining missions and duties of the road transportation department of the Ministry of Roads and Transportation with missions and duties of the Public Terminals for Cargo Vehicles Private Joint Stock Company, it established a new organization called the Transportation and Terminals Organization.
Passing a law for the establishment of the Public Terminals for Cargo Vehicles Private Joint Stock Company in 1988 can be considered a turning point in road transportation arrangements. The law was passed to establish cargo terminals in order to give priority to building cargo terminals for trucks which supplied the warfronts with necessary articles. It was then generalized to other parts of the country and construction of cargo terminals began.
C) From 1994 to 2001: Another important turning point in structural and strategic arrangements of road transportation was brought about in 1994. In that year and based on a decision by the High Administrative Council, the Road Transportation Department of the Ministry of Roads and Transportation, which was in charge of both road transportation and coordination of various transportation modalities in the country and was considered a state institute involved in transportation, was merged into the General Cargo Terminals Company (Public Joint Stock). In this way, the Transportation and Terminals Organization came into being.
Today, transportation is an indispensable part of human life and it needs energy. More than one century has passed since internal combustion engines were discovered as a major development in human transportation. Expansion of investment, promotion of cultures and exchange of ideas has become possible as a result of that development. Of course, there have been complications in the course of time. Explosive increase in the number of cars and excessive demand for energy has deprived modern humans of healthy breathing and peace of mind.
Unfortunately, air pollution combined with depletion of oil resources (which account for the lion’s share of car fuel) are two major problems facing our world, so that, decreased lifespan and increased mortality are considered its most important social costs. Using alternative fuels as substitutes to gasoline and diesel is a solution to the aforementioned problems, that is, air pollution and depletion of oil reserves. Transportation sector is among the most important sectors which can help a country’s economy to prosper. The sector also plays an important role in increasing demand for oil and, thus, is a major interest to oil market analysts. Transportation is a sector heavily dependent on oil demand. See figure 1.
Figure 1 – Iran’s primary oil and gas consumption by sector / source : World Energy Outlook
Of course, there have been efforts aimed at using other forms of fuel, but oil still accounts for the highest share and that situation is expected to continue for decades to come. Therefore, transportation sector is a main consumer of oil in the world and about 50 percent of oil demand can be attributed to this sector.
Transportation sector in Iran accounted for about 52 percent of oil consumption in 2005. Important factors determine oil demand in this sector such as the number of vehicles, fuel efficiency of vehicles, development of transportation sector, available transportation infrastructures, per capita income, fuel price, and the cost of using personal cars compared to public transportation. Many methods have been proposed for prediction of oil consumption in land transportation, which accounts for more than 80 percent of oil demand in transportation.
A general review of transportation in Iran would reveal that vehicle ownership in 1,000 populations has been about 75 vehicles in 2004 including sedans, ambulances, minibuses, buses, pickups and trucks. Vehicle intensity in 1,000 populations has been high given the per capita income which is indicative of rising consumption in coming years. At the same time, the number of vehicles in 1,000 populations of Iran is currently much lower than member states of the Organization for Economic Cooperation and Development (OECD) and some developing countries like South Korea, though it is higher than the average figure for China, South Asia and Middle East as well as Africa, and recently OPEC member states.
5. Comparative study of vehicle fleets in Iran and the world
Vehicle ownership in 1,000 populations is different in countries and can give an estimate of rising oil demand in transportation sector. In addition, a comparison will show the situation of different countries in terms of saturation level of that ownership or various stages of growth in ownership. Table 1 shows the number of vehicles for different regions and countries in 2002.
Table 1- number of vehicles for different regions and countries
Country/region | Total number of vehicles (million) | Number of vehicles in 1,000 populations | Saturation level |
US | 218 | 774 | High: limited potential, stable |
OECD region* | 628 | 550 | High: limited potential, stable |
OECD region: North America* | 269 | 640 | High: limited potential, stable |
OECD region: Europe* | 286 | 430 | High: limited potential, stable |
OECD region: Pacific* | 93 | 460 | High: limited potential, stable |
Latin America* | 43 | 100 | Medium: relatively high growth potential |
Africa* | 18 | 20 | Low: relatively high growth potential |
Asia* | 104 | 30 | Low: relatively high growth potential |
Middle East* | 19 | 120 | Medium: relatively high growth potential |
Iran* | 4.99 | 75.4 | Low: relatively high growth potential |
Developing countries* | 202 | 40 | Low: relatively high growth potential |
China* | 16 | 12 | Low: relatively high growth potential |
World* | 830 | 130 | Medium: relatively high growth potential |
Source: for those with (*): Dargay et al; for Iran: Iran Statistical Center; for US and China:
OPEC’s statistics office, Vienna, 2005; information is for 2000
The next figure shows the number of vehicles in different parts of the world. It is clear that vehicle ownership in 1,000 populations is high in developed countries and is near saturation. For example, there are 774 vehicles for 1,000 populations in the United States and since people use public transportation and all people do not have access to personal vehicles, and also due to structural limitations, increase in number of cars is slow. Of course, this does not mean that the absolute number of cars is not rising, but the number of vehicles in proportion to populations is at a stable level. As the figure shows, vehicle ownership per 1,000 populations is high in the United States as well as OECD countries in North America, Europe and Pacific region. At the same time, vehicle ownership is low in such developing parts of the world as the Middle East, Latin America, Asia, and Africa. If economic conditions and infrastructure for road transportation improved, such countries would have high potentials for sudden rise in number of vehicles and the subsequence high demand for oil in transportation sector.
Figure 3 – Number of vehicles in 1,000 inhabitants in 2002 Sources : Dargay Joyce et al. 2006 & Statistical Center of Iran, Statistical Almanacs for 2005 to 2007
Figure 4 – Trend of number of vehicles in 1,000 populations in the world and Iran
It is hard to say whether developing countries will tread the same path as developed ones. As the figures show, the number of vehicles in 1,000 populations in other European countries (not OECD region) is slightly higher than 200 vehicles. Increase in number of those vehicles and the saturation level will depend on various factors such as economic development of those countries, improvement in transportation infrastructures and development of public transportation. Anyway, it is very difficult to set a saturation point.
The number of vehicles in 1,000 populations in Iran is higher than the average figure for China, South Asia, Middle East and Africa and has recently overtaken the figure for OPEC, which is telltale of rapid rise of number of vehicles in Iran, especially in recent years. Total number of vehicles was increase to about six million by the end of the Iranian year 2006-07. Meanwhile, the number of vehicles had increased to 1.8 million in 1991, to about 2.45 million in 1996 and to 3.68 million in 2001. Increase in number of vehicles despite lack of a proportional development in infrastructures, especially in big cities, indicates a complicated situation in terms of traffic and environmental pollution. Of course, consumption of oil products will continue to rise and the sector will remain the main source of demand for those products.
6. Growth in number of vehicles in comparison to growth in per capita income
As revenues go up and adequate vehicles are supplied and when there are necessary infrastructures for transportation and enough fuel for cars, the number of vehicles will begin to rise. Study of the relationship between number of cars in 1,000 populations and per capita income is important in that if the relationship is proved, the model for predicting the number of cars can be a function of per capita income. Therefore, various scenarios can be used to predict per capita income and, therefore, the number of vehicles in 1,000 populations. In this way, by predicting the number of vehicles and entering average fuel consumption of vehicles in the equation, the demand for fuel in transportation sector could be calculated.
Figure 5 – Number of vehicles in 1,000 populations to actual per capita income (1970-2002)
Figure 5 shows the number of vehicles in 1,000 populations plotted against per capita income. This diagram is based on information related to the period from 1970 to 2002. As is evident, for OECD countries, the increase in number of vehicles has paralleled the rise in per capita income and the diagram in “S” shape and use of vehicles is much lower than in the developed countries. In China, where per capita income is over 4,000 dollars, there are less than 20 vehicles in 1,000 populations.
Although the diagram shows that increase in number of vehicles parallels increase in per capita income, but it is not clear how this course will be completed before reaching the saturation point (which is not possible to determine) and, therefore, it is difficult to predict oil demand in an important country like China, which is very significant for international oil markets. Iran, with a per capita income which is lower than China and other developing countries has more vehicles per 1,000 populations.
- Developments related to growth in number and type of vehicles in Iran
Total number of vehicles in Iran in 1948, including sedans, ambulances, buses, and heavy trucks, has stood at 28,154. Share of sedans in that year has stood at 44 percent with heavy vehicles accounting for 41.4 percent.Table 2 – Number and type of vehicles in Iran (in Millions)
Type of vehicle | 1948 | 1951 | 1961 | 1971 | 1981 | 1991 | 2001 | 2002 | 2003 |
Sedan | 0.012 | 0.021 | 0..097 | 0.315 | 1.180 | 1.562 | 2.973 | 3.484 | 4.118 |
Ambulance | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.001 | 0.001 | 0.001 | 0.001 |
Bus | 0.004 | 0.005 | 0.008 | 0.023 | 0.038 | 0.051 | 0.071 | 0.074 | 0.077 |
Minibus | 0.000 | 0.000 | 0.000 | 0.008 | 0.042 | 0.076 | 0.098 | 0.099 | 0.101 |
Heavy truck | 0.012 | 0.015 | 0.034 | 0.046 | 0.046 | 0.077 | 0.162 | 0.172 | 0.178 |
Pickup | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.085 | 0.382 | 0.445 | 0.620 |
Automobile | 0.028 | 0.041 | 0.140 | 0.393 | 1.305 | 1.851 | 3.686 | 4.275 | 4.995 |
A glance at increasing number of vehicles in Iran from 1948 up to the present time will show that although total number of vehicles in Iran has not been high in 1940s, 1950s, 1960s, and 1970s, but annual growth rate has reached 10-12 percent.
Figure 6 – Share of various vehicles in Iranian fleet in 2003
Growth rate for vehicles has greatly decreased in 1980s and 1990s with respective growth figures of 3.5 percent and 6.9 percent. During recent years, a new wave of purchase of cars has started in Iran, so that, vehicle growth rate for 2000 and 2002 respectively stood at 14.8 percent and 15.6 percent. During the past two years alone, 1.3 million vehicles have been added.
8. Consumption of oil products in transportation sector
Transportation sector is among major oil-consuming sectors and despite many steps taken to replace oil with other fuels such as liquefied petroleum gas (LPG), liquefied natural gas (LNG), ethanol and biomass fuels, oil products are still on the top of the list and that situation is expected to continue into coming decades. Share of gasoline, gas and alternative fuels in total fuel consumption in the sector has respectively stood at 58 percent, 38 percent, and 4 percent (IFQC, 2006).
Study of international oil consumption in different sectors will reveal that about 50 percent of total oil consumption is accounted for by transportation sector. The same is true about Iran. Share of transportation in consumption of oil products was about 52 percent in 2005. Therefore, this sector should be focus of attention for energy policymakers. Otherwise, intense consumption of oil products will possibly overtake Iran’s crude oil export capacity in coming years. Gasoline rationing using electronic cards which limit consumption to a determined level cannot be a long-term solution because it targets social welfare unless two prices are considered for fuel with the second price being so high as to make up for the subsidy paid on the rationed part without increasing government’s expenses.
Consumption of oil products in Iran stood at 11.2 million barrels (4.9 million liters per day) in 1966, which has increased to about 247.4 million barrels (107.8 million liters per day) in 2005. Consumption of oil products in transportation sector has been constantly rising and has stood at over 5 percent since 1998. Average growth during this period has stood at about 6.21 percent which is a high growth rate. Figure 7 shows that consumption of oil products in Iran has been steeply increasing in recent years.
Figure 7 – Consumption of oil products in transportation sector and consumption per vehicle
Oil consumption per vehicle is an index for measuring performance of different variables in transportation sector. This variable sometimes falls when other factors work to reduce oil consumption.
For example, increased fuel efficiency, reduced traveling by cars as a result of high fuel price or low income, development of public transportation and increase in relative costs of using personal vehicles are some of those factors. Therefore, depending on future changes in those factors, oil consumption per vehicles will change.
9. Transportation and environment
Transportation is a major consumer of energy and unlike other sectors; its energy demand is constantly on the rise. This is a natural consequence of growth in road transportation where energy efficiency is lower than other sectors and causes more pollution. Growth of road transportation is related to the powerful cause of freedom of consumers and completion of domestic markets in Western countries. There are solutions to reduce energy consumption and pollution, but they call for new plans as well as new attitudes and financial and economic tools.
Transportation is synonymous with energy consumption. To overcome problems in time and space we must consume more energy. Energy consumption determines the relationship between utilization of land and local structures and that relationship determines intensity of pollution at local and global levels. Current debates about global warming and ozone depletion are related to consumption of energy and our ability to preserve current lifestyles in the face of dire environmental situation.
Pollution from vehicles in large cities is a serious problem. Four thousand people die from air pollution-related diseases each year in Tehran –capital of Iran. To reduce demand for refined products and lower air pollution, the government is seeking to introduce compressed natural gas vehicles. The introduction of CNG vehicles is expected to continue in the next 20 years, but their share in the vehicle stock will remain marginal, accounting for less than 1% of road-fuel demand in 2030.
Saving in time has led to more travels and consumption of more energy. As we have overcome the limits of time and distance, we have allocated the time saved in this way to more traveling.
Even if people traveled on train, it would still increase demand for energy though trains are more fuel efficient than cars. Shortening travel time has been made possible by consuming huge amounts of energy. Thus distance of travels and number of trips has increased. Road transportation is much more energy-intensive than railroad or air transport.
Studies have shown that to transport one ton of cargo for a single kilometer, road transportation will need 4-5 times the energy that is needed by a train to do the same. The energy used by a car to carry a passenger over one kilometer is 4-5 times that of a bus and 2-3 times that of a tram. The energy used in a vehicle to make it move is just part of the total energy consumed by it.
Table 3-Solutions to energy and environment problems
Technical solutions | · Reducing pollution and increasing fuel efficiency
· Using alternative fuel or optimized fuels |
Role of driving | Observing driving rules and technical considerations when driving any vehicle |
Regulation of transportation plans and policies | Revising policies adopted for transportation sector in view of energy and environmental limitations |
Making policies to set transportation price | · Determining road transportation duties
· Increasing taxes |
Policies aimed to reduce fuel consumption | · Fuel rationing
· Using a two-tier fuel price system |
Developing subway in Iranian metropolises | Appendix 1 shows transport of passengers by subway in the first 5 years after its inauguration while Appendix 2 shows strategic plan for subway trips up to 2021. |
Privatization of public transportation | At present, only some taxi lines and part of bus fleet in the capital city has been privatized. Private sector’s competition will not only improve quality of services, but increase speed of transportation and reduce pollution. |
Correcting social and cultural attitudes | Preventing increase in energy demand in transportation sector depends on correcting people’s social and cultural attitudes. Improving economic and technological conditions, developing educational programs, supervising over good implementation of laws and introducing real fuel price are major steps that should be taken. |
As a result to have an efficient transportation system, coordination among all constituent components as well as relevant state-run and private organizations is necessary and that coordination better be horizontal than vertical. Also, the following factors should be taken into consideration:
• Geographical: includes locations of production and consumption of a commodity or service, area of territory, nature of territory in terms of rural or urban as well as locations of physical distribution agents;
• Human: distribution of populations over territory in addition to cultural and social characteristics of a society;
• Political: national, regional, and international policies; economic and commerce policies; cultural, social, and welfare policies; defense, military, police and national security policies;
• Environmental: air and sound pollution and its relationship to use of vehicles;
• Technological: planning and system design techniques, availability of infrastructures for transportation as well as managerial techniques used to avail of transportation assets.
10. Conclusion
Undoubtedly, the transportation sector is one of the most important sectors consuming oil and its products. More than 50 percent of demand for oil in Iran can be attributed to the transportation sector. The number of vehicles in 1,000 populations is a major variable determining oil consumption in the sector. Although this figure for Iran is less than 100 and is way behind OECD member states, it has considerably risen in recent years. Since public transportation has not developed in Iran and fuel price is not an inhibitory factor for control of trips and fuel consumption, and since most social classes can afford the costs of having a personal car, despite lack of remarkable increase in per capita income, the number of vehicles in 1,000 populations has greatly increased in the past few years. This has led to increased emission of greenhouse gases and resultant environmental problems for populations of large cities in Iran.
Therefore, to achieve the goals of the 20-Year Vision Plan and in line with other long-term plans, energy policies related to transportation sector should be revised away from political matters and international experiences should be taken advantage of.
More studies are recommended on making models for measuring average fuel consumption by vehicles as well as their fuel efficiency taking structural and technical variables into account including the length of highways and dirt roads.
References:
1. World Energy Outlook, Middle-East and North Africa Insights, 2005, INTERNATIONAL ENERGY AGENCY; IEA /OECD, France
2. Dargay Joyce, Dermot Gately, Martin Sommer, 2006, Vehicle Ownership and Income Growth, Worldwide: 1960-2030, IMF working paper
3. Statistical Center of Iran, Statistical Almanacs for 2005 to 2007
4. Statistical Center of Iran, Statistical Almanacs for 1998 to 2003
5. Shayegan Energy and Economic Consultants Co., Energy Information, www.energyseec.com
6. OPEC, 2004, OPEC Annual Statistical Bulletin, Vienna, Austria, www.opec.org
7. OPEC, 2004, Oil & Energy Outlook to 2025, OWEM sceneries, March 2004, OPEC secretariat, Vienna
8. EIA, 2000, the National Energy Modeling System; an overview 2000, www.eia.doe.gov/aiaf/aeo/overview/index.html
9. OPEC, 2006, workshop on Modeling Fuel demand in the Transportation sector proceedings, Vienna, Austria
10. Cozzi Laura, 2006, “Transport Module at the IEA World Energy Model: Capturing Efficiency Trends and Consumer Choices, Workshop on Fuel Demand Modeling in the Transportation Sector”, OPEC secretariat, Vienna
11. Brennand Carry, 2006, Transportation Sector Modeling at the OPEC Secretariat, Workshop on Fuel Demand Modeling in the Transportation Sector, OPEC Secretariat
12. IFQC, 2006, International Fuel Quality Center, Global Renewable Fuels
13. Outlook to 2010, Hart Energy Publishing
Appendix 1
Figure 1 – Number of subway passengers
Appendix 2
Table 1 – Number and estimate of daily trips in Tehran in the period 1999 – 2021
Year 1999 2001 2006 2011 2016 2021
Daily intra-city trips 11,100,000 11,700,000 12,700,000 13,700,000 14,700,000 15,700,000
Total outgoing trips 1,820,000 2,000,000 2,300,000 2,600,000 2,900,000 3,200,000
Total intra-city and outgoing trips 12,920,000 13,700,000 15,000,000 16,300,000 17,600,000 18,900,000
Daily trips on subway 80,200 432,000 1,435,000 2,274,000 2,932,000 3,808,000
Percent of trips handled by subway 0.6 3.2 9.6 14 16.7 20.1
Source: Strategic Plan for Express Transportation in Tehran and Suburbs; 1998 – 2021