October 9, 2024

nasser aghaabbasi

Academic rank: Instructor
Address:
Education: MSc. in -
Phone: 9123784649
Faculty:

Research

Title
Investigating the relationship between energy consumption and economic growth of the industrial sector in Iran
Type Article
Keywords
Energy consumption, economic growth, industry sector, employment, capital
Researchers nasser aghaabbasi, mohammd javad mehdi zad

Abstract

Efficient use of energy resources and savings in the use of energy carriers is important, especially in the industrial sector. Therefore, understanding the type of relationship between growth energy consumption and industrial production is essential to achieving this goal. In this research, due to the close relationship between energy consumption and the economic growth of the industrial sector in Iran, we have investigated a long-term relationship through the Vector Explanation Model with Long Intervals (ARDL). We have also examined the causal relationship between energy consumption in the industrial sector and the economic growth of the industrial sector from the years 1981-to 2017. The results of the self-explanatory vector pattern with wide intervals showed: All coefficients are significant at a 95% confidence level. The results showed that employment in the industrial sector, in the long run, has a positive and significant effect on the economic growth of the industrial sector in Iran. Energy consumption of the industrial sector, in the long run, has a positive and significant effect on the economic growth of the industrial sector in Iran. In the long run, the capital of the industrial sector has had a positive and significant effect on the economic growth of the industrial sector in Iran. According to the results, the energy consumption of the industrial sector does not rule out the economic growth of the industrial sector is rejected. But we cannot reject the second hypothesis that the economic growth of the industry is not a Granger cause of energy consumption. Therefore, the one-way cause of the energy consumption of the industrial sector to the economic growth of the industrial sector is established. Considering the one-way causal relationship between energy consumption in the industrial sector and economic growth in the industrial sector, we can conclude that increasing energy consumption will stimulate economic growth.