Majid Aghaei; Mahdieh rezagholizadeh
Abstract
According to the importance of energy in economy, especially in developing countries, investigation the impact of energy consumption on poverty and inequality in Iran is necessary. this study investigates the direct and indirect impact of energy consumption in agricultural, industry and service sectors ...
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According to the importance of energy in economy, especially in developing countries, investigation the impact of energy consumption on poverty and inequality in Iran is necessary. this study investigates the direct and indirect impact of energy consumption in agricultural, industry and service sectors of Iranian economy on the poverty and inequality. the simultaneous equations consist of production equation, inequality, energy demand and poverty equations and instrument variable estimator was used to achieve this goal in the period of 1984-2010. The results of this study indicate that energy consumption in service sector reduce poverty directly but the indirect effect of energy consumption on poverty reduction through inequality reduction has not confirmed. On the other hand, energy consumption in industry and agriculture sectors has just an indirect effect on poverty reduction through inequality reduction. Also, based on the results, energy consumption through positive and significant effect on the economic growth, reduce poverty indirectly in all sectors.
