Estimating Allocation efficiency of Energy Inputs in Agricultural, Industry, and Services

Energy as one of the main factors of production has an important place in economic activities. The limitation of energy sources and the environmental pollution problem due to the excessive use of energy resources (especially fossil fuels) has necessitated the efficient and optimal use of energy and has led to the emphasis on energy efficiency in policy and most energy sector studies in the world. In this study, the effect of energy efficiency on the value added of economic sectors of Iran during the period of 1991-2016 was carried out in two sections; In the first section, the frontier Translog function was estimated the allocation efficiency of the inputs with the aid combined observation with use of the Stata software 13, that was calculated the aid first-order condition of minimizing the cost. In the second part, using the GLS method was evaluated the effect allocation efficiency of energy inputs on the added value of economic sectors. The results of this study showed that the allocation efficiency of petrol and fuel oil have a positive and significant effect on added value of the economic sectors with coefficients 0.1016747 and 0.3700357 respectively. Also, the allocation efficiency of electricity, kerosene and gas oil has a positive and significant effect on the added value of the economic sectors.