Document Type : Research Paper
Authors
1 Faculty of Economics, Allameh Tabatabai University
2 Student
3 Faculty of Economics,, Allameh Tabataba’i University, Tehran, Iran.
Abstract
Iran, with its diverse energy reserves, is one of the countries that pays attention to energy production, distribution, and consumption. One of the factors affecting the energy efficiency gap is the country's financial system. The financial system can improve or weaken energy efficiency by providing financial resources and facilitating access to capital required for energy projects. The performance of the financial system, on the one hand, increases energy consumption, which leads to a decrease in energy efficiency, and on the other hand, promotes technology and increases the level of energy efficiency. In this study, the function of the financial system on the energy efficiency gap in Iran during the period 1370-1403 is examined. First, the energy efficiency gap is estimated using the Shepard energy distance function and stochastic frontier analysis, and then we examine the effects of financial systems on the energy efficiency gap in those years using the smooth transition regression (STR) technique. The findings show that the regime change occurred at a threshold value of 3.14 for the financial system variable. The slope of the transition function between the two regimes was 3.21, indicating a smooth transition between the two regimes. The variables of the banking system, stock market, and technological progress in the high and low regimes have an impact on reducing the energy efficiency gap in Iran. Other variables such as the insurance industry, government spending, foreign investment, ,energy structure in the studied period do not have an impact on the energy efficiency gap in Iran.
Keywords
- Energy efficiency gap, financial systems, Shepard'
- s energy distance function, Stochastic Frontier Analysis, Smooth Transition Regression Model (STR)
Main Subjects
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