AN INVESTIGATION OF RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH IN IRAN (1967-2006)

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BEHBOUDI D.; ASGHARPOUR HOSSEIN; GHAZVINIAN M.H.

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Journal: ENERGY ECONOMICS REVIEW Year:2008 | Volume:5 | Issue:17 Page(s): 57-72

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Title

AN INVESTIGATION OF RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH IN IRAN (1967-2006)

Author(s)

BEHBOUDI D. | ASGHARPOUR HOSSEIN | GHAZVINIAN M.H. | Issue Writer Certificate

Keywords

ENGEL-GRANGER CO-INTEGRATION TESTQ3

JOHANSEN-JUSELIUS CO-INTEGRATION TESTQ3

ELECTRICITY CONSUMPTIONQ2

ECONOMIC GROWTHQ3

IRANQ3

Abstract

Economic activity is not possible without supportive infrastructure. Electricity plays an important role in industrial development of countries, due to the replacement of mechanical power with electrical power as part and parcel of the industrialization process. The increase in ELECTRICITY CONSUMPTION per capita in IRAN thus indicates average improvements over time in terms of ECONOMIC GROWTH, development and social welfare.This article aims to assess the relationship between ELECTRICITY CONSUMPTION and ECONOMIC GROWTH using time series data for the 1967 - 2006 periods. The study applies Engel-Granger and JOHANSEN-JUSELIUS CO-INTEGRATION TESTs to the long-term relationship between ELECTRICITY CONSUMPTION and ECONOMIC GROWTH. The results show that there is a positive long-term relationship between these two variables. The study results indicate that increased use of electricity leads to ECONOMIC GROWTH which in turn increases the demand for electricity. The above underlines the importance of paying due attention to meeting the energy needs of economic sectors. The empirical findings of this paper imply that energy limitation policies which improve economic efficiency can be implemented without any negative effect on ECONOMIC GROWTH.

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APA: Copy

BEHBOUDI, D., ASGHARPOUR, HOSSEIN, & GHAZVINIAN, M.H.. (2008). AN INVESTIGATION OF RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH IN IRAN (1967-2006). ENERGY ECONOMICS REVIEW, 5(17), 57-72. SID. https://sid.ir/paper/99543/en

Vancouver: Copy

BEHBOUDI D., ASGHARPOUR HOSSEIN, GHAZVINIAN M.H.. AN INVESTIGATION OF RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH IN IRAN (1967-2006). ENERGY ECONOMICS REVIEW[Internet]. 2008;5(17):57-72. Available from: https://sid.ir/paper/99543/en

IEEE: Copy

D. BEHBOUDI, HOSSEIN ASGHARPOUR, and M.H. GHAZVINIAN, “AN INVESTIGATION OF RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH IN IRAN (1967-2006),” ENERGY ECONOMICS REVIEW, vol. 5, no. 17, pp. 57–72, 2008, [Online]. Available: https://sid.ir/paper/99543/en

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