Application of Decomposition Models in Energy Consumption Gaps of Iranian Households

The home sector has the largest share in the country's energy consumption, therefore, the present study tries to investigate the factors affecting the energy demand and the estimation of the deficient component in the energy expenditure gap of households using the approach of decomposition model by gathering data from families between 2008 and 2016. The result shows that income, education of householders, and urbanization have a negative influence, and the housing foundation has a positive and significant effect on the share of family energy expenditure. Evidence from the analysis of Oaxaca-Blinder Decomposition shows that the contribution of the deficient component in energy expenditure on total energy expenditure was 90. 4 and 84. 5 in 2008 and 2016, respectively. The outcome of meta-analysis reveals that in the fifth quantile, the share of the efficient component had been increased from 1. 16 percent in 2008 to 3. 05 percent in 2008, however, in the ninetyish quantile the contributions of the efficient component reached 22. 22 in 2016 from 15. 48 in 2008. So, efficiency improvement in energy consumption of households can play an important role in reducing energy consumption of households.