The Effect of Increasing Price of Energy Carrier on Energy Consumption Intensity

Seyed Alireza Jorjorzadeh¹ Seyed Adel Khorasani² Vahid Madih³

1) Assistant Professor of Economics and Faculty Member of Islamic Azad University, Ahvaz Research Sciences Branch
2) Assistant Professor of Economics and Invited Teacher, Islamic Azad University, Ahvaz Research Sciences Branch
3) Master s degree student in energy economics, Islamic Azad University, Ahvaz Research Sciences Branch

IOI Code : XDAF-EGDGH
Publication : 2 nd- Scientific Research Conference on Management and Industrial Engineering Baku, Azerbaijan(cmieconf.com)
Abstract :
    Energy is one of the main factors in the progress of societies, the industrial development of the country precedes the use of energy, high energy prices and high production costs, economic growth and industrialization of societies, the growing need of countries for energy, very close competition between countries. Reducing production costs for continued presence in consumer markets and shortage of allergy supply resources have prompted countries to adopt energy efficiency policies to prevent excessive and inefficient energy consumption and reduce production costs and increase public welfare. So, achieving sustainable and comprehensive development is not possible without a comprehensive energy use plan. In this regard, the issue of energy consumption intensity and increase in the price of energy carriers is one of the important issues for all policymakers and economic planners. If a significant relationship can found between the two variables, price can used as an effective policy tool to control and increase energy efficiency. In this study, it tries to find the effect of increasing the price of energy carrier on the intensity of energy consumption in Iran. The research findings showed that after the increase in the price of energy carriers, the intensity of energy decreases, so that the highest decrease in the first year is the implementation policy and in the following years, the rate of decrease in energy intensity decreases. Energy-intensive production cannot determined with certainty, and factors of production have an uncertain effect on energy intensity, in some cases reducing consumption and in some cases increasing consumption.

Keywords : energy consumption intensity energy carrier prices & economic growth var models vecm