A Study of the Relationship between Energy Consumption and Urbanization in Iran Using the ARDL (Autoregressive Distributed Lag) Approach

In This paper، we estimate the energy consumption function، using the ARDL approach for the period of 1971-2008. The results offer empirical evidence of the relationship between urbanization and energy consumption in Iran. There is a long run and stable relationship between energy consumption، gross domestic production (GDP)، urbanization and energy prices. The data confirm a positive relation between energy consumption and urbanization for the long run and short run in Iran. The results of the ECM test، shows that all imbalances in the model، are resolved in the long run، and the correction of short run error takes less than 3 years.