Estimatinge the Electricity Demand and the Effect of Targeted Subsidies Case Study: The Rural Area of Zabol City

One of the important inputs of the agricultural sector in Zabol which uses harvesting waterfrom wells and has developed in recent years, is electricity input. Therefore, in this research using the ARDL model, electricity demand function in the agricultural sector in the area was estimated from 1985 to 2011 and effective factors were determined. The results show that in the long run, the price elasticity is negative and greater than one, income elasticity is positive and greater than one and also the percentage of users have a significant effect but temperature does not affect electricity consumption. Therefore, by eliminating subsidies and increase of energy sourcer prices, the income of farmers and their consumption will be reduced. In In the short run, all of the above variable changes affect the demand and each shock reaches an equilibirium after 4 billing periods.