Decomposition and Determinants of Energy Intensity in Iran and selected countries

Document Type : Original Article

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1 Faculty Member of economics and Political Science

2 MA

Abstract

Energy plays an important role in human life. This role caused countries to establish energy security, increase energy supply. Since the 1970s, the energy supply was not enough, so energy demand was considered. Therefore, the control of energy consumption and energy demand started. The method of decomposition is one of the methods for investigating the factors affecting energy consumption. In this method, energy consumption changes are divided into productive effect, structural effect, and intensity effect. The results of decomposition of energy consumption in selected countries including Iran, China, Russia and South Africa show that production effect, intensity effect and structural effect respectively have the most important role in explaining changes in energy consumption in selected countries. Also, the study of energy intensity in selected countries using a panel model showed that energy intensity has a negative relationship with the energy prices and value added and has a positive relationship with energy consumption, capital formation and labor force.

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