Urbanization and Energy Consumption in Iran: Application of STIRPAT Model

Hasan Farazmand (), Ebrahim Anvari () and Baghiatallah Mousavi ()
Additional contact information
Hasan Farazmand: Associate Professor of Economics, University of Shahid Chamran
Ebrahim Anvari: Assistant Professor of Economics, University of Shahid Chamran
Baghiatallah Mousavi: Ph.D. Candidate in Economics, University of Shahid Chamran

Quarterly Journal of Applied Theories of Economics, 2020, vol. 7, issue 3, 215-240

Abstract: Considering the importance of urbanization and its relationship with energy sources, it is necessary to examine the relationship between these two variables for policy making. Accordingly, this paper reinvestigates the relationship between urbanization and energy consumption in case of Iran for the period of 1375-1393 by employing the STIRPAT (Stochastic Impact by Regression on Population, Affluence and Technology) model and autoregressive distribution lag (ARDL) Bound Test. Long-term results show that logarithms of urbanization and its square have a positive effect on energy consumption. The positive effect of transportation on energy consumption is shown that energy is the technology used in this industry. The increase in GDP per capita has increased energy consumption. The relationship between technology and energy consumption suggests the function of return effects. Short-term results also confirm the positive impact of urbanization. Short-term relationships between economic growth and energy consumption are positive. Technology has negative effect and transportation will positively affect energy consumption in the short term. Our empirical results indicate that the short run deviations stem in energy demand function is corrected by 15.39% in each quarter and will take 1 year and 2 months to achieve stable long run equilibrium path. Based on the Granger causality results, energy consumption is a major cause of urbanization.

Keywords: Urbanization; Energy Demand; STIRPAT (search for similar items in EconPapers)
JEL-codes: O31 Q41 R00 R23 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ecoj.tabrizu.ac.ir/article_12233_6247c594d639f905f5bc94ed1f31d4d6.pdf Full text (text/html)

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:ris:qjatoe:0204

Access Statistics for this article

Quarterly Journal of Applied Theories of Economics is currently edited by Sakineh Sojoodi

More articles in Quarterly Journal of Applied Theories of Economics from Faculty of Economics, Management and Business, University of Tabriz Contact information at EDIRC.
Bibliographic data for series maintained by Sakineh Sojoodi ().