The Effect of Economic Growth on Energy Consumption in Iranian Economic Sectors

Energy as a consumer input is of particular importance in all sectors of the economy. This study aims to investigating the factors affecting on energy consumption in different sectors of the economy of the country (industry, mining, services and agriculture) using combined data during 1986-2016. To achieve this goal were used of panel cointegration analysis and to estimate short and long-run relationships from Dynamic Least Squares (DOLS) and Integrated Mean Groups (MG) test, respectively. The long-run estimation of the model states that there is a significant and positive relationship between capital and gross domestic product with energy consumption and a non-significant relationship between labor force and energy consumption. Also, the short-run relationship between all variables in the model was confirmed. The other results of the research showed that the elasticity of energy consumption in the economic sectors is positive and significant to labor force, capital and GDP in agriculture, industry and mining and services sectors.