Estimated Energy Demand Function and Substitution Elasticity between Inputs in Industry Section: Seemingly Unrelated Regression Estimation

This paper intends to estimate the energy demand function in industry section basedon the two-stage optimization approach. Consequently، it defines the substitutionelasticity between inputs. Energy demand estimation in various sections makes itfeasible to define energy policies. At the first phase the key influential factors on theenergy demand function estimation in industry section which is one of highconsumption section، were defined and at the next phase the elements of energydemand were determined through logit function and seemingly unrelated regressionestimation and price and substitution elasticity were calculated.