Evaluation of long-term convergence in energy intensity and supporting government policies in agriculture

Given the importance of agriculture and energy consumption in this sector, this study was performed to evaluate the producer supports and energy intensity are looking for evaluation of past performance and solutions to improve future situation. For this purpose, in this study is used an approach of time series models in 1981-2012 to investigate the convergence of long-term between energy intensity and producer support policy. In this context, according to the data type is used the Johansen –Joselius cointegration method. The results show with the increase in government supports from agriculture producers, energy intensity declined.so that in the long term for increasing a billion Rials in supports, the energy intensity will decrease -2.66 *10-6 units. Based on these results, according to the targeted subsidy program, the Government pays its benefits to this sector in the fifth and sixth development programs with more aggressively pursue.