A Survey of the Causality Relation between Energy Consumption and Economic Growth in Iran

Document Type: Original Research

Authors

1 Associate Professor of Management and Economy Faculty, Islamic Azad University of Shiraz, Shiraz, Iran

2 Management and Economy Faculty, Islamic Azad University of Shiraz Branch, Shiraz, Iran

Abstract

The study of the reasons of economic growth is of great importance and it is always considered by many economists. Improving life quality of people and increasing public welfare are the goals of various governments in the world and economic growth is one of the important factors in achieving these goals. Thus, searching about the factors effective on economic growth is of great importance. The present study evaluated the relationship between energy consumption and economic growth in Iran and time series data were used during 2009-1971. To estimate model, vector error correction model (VECM) is used. The results showed that there is a two-way causal short-term and long-term relationship between energy consumption and economic growth.

Keywords


Abrishami, H. &; Mostafayi, A. (2001). The investigation of the relationship between economic growth and consumption 45 major oil products in Iran. Knowledge and development journal: 14, P: 13-45.
Amade, H., & Hosseinpour, A. (2001). The investigation of the relationship between energy consumption and economic growth and employment in various sectors of economy of Iran. Knowledge and development journal: 14. Fall and winter 2001. P: 27-64.
Ayres R. & Nair I. (1984). “Thermodynamics and Economics”, Physics today, 35, PP. 62-71.
Barbridge J. & Harrison A. (1984). “Testing for the Effects of oil prices Rises Using Vactor Auto Regressions”, International Economic Review, 25, pp. 459-484.
Berndt E. R. (1978). “Aggregate Energy, Efficiency, and Productivity Measurement”, Annual Review of Energy, 3, pp. 225-273.
Central bank, Time series data
Denision E. (1979). “Explanations of Declining Productivity”, Wise Monitoring Quarterly, 17, pp. 3-20.
Energy balance sheet of various years
Glasure.Y. U. (2002). Energy and National Income in Korea: Further Evidence on the role of Omitted Variables. Energy Economics, No.24, PP. 355-365.
Hamilton, J.D. (1986). “Oil and the Macro economy Science world war 2”, Journal of political Economy, 91, pp. 228-248.
Masih, A. M. M. & Masih, R. (1996). Energy Consumption, Real Income and Temporal Causality, Result From Multi-country Study Based on Co-integration Modeling Techniques, Energy Econmics,18,pp165-83.
Narayan P. K. & R. smyth (2004). “Electricity Consumption , Employment and Real Income in Australia Evidence from Multivariate Granger Causality Tests”, Energy policy , Article in press
Nofersti, M. (1999). Unit root and co-integration in econometric (1st ed.). Tehran. Rasa institution publications. P: 103.
Oh, W. and Lee, K. (2004). "Causality Relationship between Energy Consumption and GDP Revisited".