Energy Intensity in Iranian Provincial Manufacturing Industries; Investigating the Effects of Government Expenditures and Foreign Direct Investment Using Spatial Econometric Models

Mousavian, Seyed Mehdi; Karimi Takanlu, Zahra; Sadeghi, Seyed Kamal; Pourebadollahan Covich, Mohsen

doi:10.22054/jiee.2019.9842

Document Type : Research Paper

Authors

¹ Assistant Professor of Economics, University of Tabriz

² Ph.D. Student of Economics, University of Tabriz

³ Associate Professor of Economics, University of Tabriz

https://doi.org/10.22054/jiee.2019.9842

Abstract

The formulation of effective energy efficiency (reducing the energy intensity) policies requires study of the factors affecting energy intensity. The final consumption of energy in the manufacturing sector of Iran has grown significantly in recent years. The purpose of this study was to investigate the factors affecting the energy intensity in the manufacturing industries of Iran, especially the effect of government expenditures and foreign direct investment on the energy intensity in these industries and controlling the spillover effects between provinces using provincial panel data of Iran from 2000 to 2014. Based on Panel (Robust) LM, Wald and LR tests, Spatial Durbin Model (SDM) has been used to investigate the spillover impact effects of energy intensity. According to the results, energy prices, private ownership and government capital expenditures have a negative effect on energy intensity, while export-value added and capital-labor ratios have a positive impact on energy intensity. Foreign direct investment also did not have a significant effect on energy intensity. These results call for greater attention to the adoption of higher production technologies in investment and the role of the government in energy intensity changes. The results indicate possibility of using neighboring enrichment policies to increase energy efficiency.

Keywords

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Iranian Energy Economics

Energy Intensity in Iranian Provincial Manufacturing Industries; Investigating the Effects of Government Expenditures and Foreign Direct Investment Using Spatial Econometric Models

References

References

Volume 7, Issue 28 - Serial Number 4
October 2018
Pages 157-184

Energy Intensity in Iranian Provincial Manufacturing Industries; Investigating the Effects of Government Expenditures and Foreign Direct Investment Using Spatial Econometric Models

References

References

Volume 7, Issue 28 - Serial Number 4October 2018Pages 157-184

Volume 7, Issue 28 - Serial Number 4
October 2018
Pages 157-184