Does structural change boost the energy demand in a fossil fuel-driven economy? New evidence from Iran

Bahareh Oryani, Hesam Kamyab, Аli Mоridiаn, Zahra Azizi, Shahabaldin Rezania and Shreeshivadasan Chelliapan

Energy, 2022, vol. 254, issue PC

Abstract: Based on data availability, this study investigates the impact of structural change on energy consumption (EC) in Iran from 1976 to 2017. Therefore, the economic complexity index (ECI) was incorporated into the energy demand besides real GDP (RGDP) and real energy price index (REPI), which is constructed based on Iran's leading energy carriers. Multiple econometrics techniques are applied to deliver a more reliable and accurate analysis, such as the autoregressive distributed lag model, error correction model, Bayer and Hanck cointegration test, and three cointegration regressions: fully-modified ordinary least square (OLS), dynamic OLS, and canonical cointegrating regression, and finally Breitung-Candelon Spectral Granger. In the short and long-run, RGDP and ECI increase (rebound effect) EC while REPI reduces it. Furthermore, the causality results show that RGDP, ECI, and REPI are linked to EC in the short, medium, and long run. The study's results have implications for policymakers to manage Iran's energy consumption. They highlighted the importance of raising public environmental awareness, diversifying the energy mix, and continuing to implement the law on targeted subsidy.

Keywords: Structural change; Energy consumption; Energy price; Economic growth; Iran (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544222012944
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:254:y:2022:i:pc:s0360544222012944

DOI: 10.1016/j.energy.2022.124391

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().