The Effect of Nominal and real Shocks on the Energy Intensity in Iran: A structural approach

Document Type : Scientific paper

Authors

1 Faculty member of Economics at University of Mazandarn

2 University of Mazandaran, Faculty of Economics and Administrative Science

3 UNIVERSITY OF MAZANDARAN

Abstract

The issue of energy efficiency is very important due to the limitation of non-renewable resources, greenhouse gas emissions, loss of green areas, global warming, and environmental pollution. The importance of this issue in Iran is twofold due to the dependence of the country's foreign exchange earnings on energy resources. The energy intensity index, which measures the energy consumed for GDP, is one of the most important indicators for assessing energy efficiency. This index is affected by many nominal and real economic, political, and social variables that need to be examined to improve energy efficiency, the effect of these factors on the intensity of energy consumption. The main objective of this paper is to investigate the effect of nominal and real impulses in the energy intensity in Iran According to the time series data of 1353-1399, the research model itself regression (SVAR) model is estimated. The results of the instantaneous reaction functions and analysis of variance show that the effect of the real exchange rate and liquidity on the intensity of positive and sustainable energy consumption and the impact of government expenditure and total productivity of the total production factors has been negative and stable. The also has a negative effect. Also, real impulses (productivity of total production factors and real exchange rates) have a greater contribution to the intensity of energy intensity.

Keywords

Main Subjects

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Macroeconomics Research Letter
Volume 17, Issue 34
September 2022
Pages 137-166

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History

  • Receive Date: 01 February 2022
  • Revise Date: 04 July 2022
  • Accept Date: 20 August 2022

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