1 <h5>Introduction</h5> Iran owns the second largest oil and gas reservoir in the world. Iran is also the fourth largest producer and consumer of gas and the fourth largest producer and exporter of oil in the world.</P>A strong dependency has been created between the oil and gas sectors and the economic growth in the country during the hundred years of oil production and the forty years of development of gas consumption network. Oil revenue is also the biggest provider of the government’s budget and the growth of all sectors of the economy directly and indirectly is effected by petro-dollars ( Central Bank of Iran Report, 2009 ).</P>The original idea to use system dynamic models in energy discussions came to existence by Naill (1973) who developed a model for United States gas industry. Sterman (1981) also developed a system dynamic model with mutual relationship between energy and economy in his doctorate thesis.</P>The other works done in this field were mainly based on Nail and Sterman’s efforts. For example New Zealand’s dynamic energy model by Bodger and May (1992) and the model for discovery and extraction in India by Chowdhury and Shau (1992) . Recently, Chi et al. (2009) developed
Energy Policy – Elsevier
Published: Dec 1, 2010
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