Identifying the effective factors of sectoral energy efficiency in Iran's economy

Energy is one of the important inputs of production process in each country, so that it is impossible to produce any goods or services without energy. Moreover, energy is a scarce and valuable input, therefore specifying the effective factors of efficiency energy consumption becomes more important. Because of non-homogeneity of nature and production process of economic sectors (agriculture, industry, transportation and services) identification of effective factors of sectoral energy efficiency in Iran’s economy was set as the goal of this research. In this respect, based on theoretical grounds and empirical evidence and use of sectoral data for 1373-1391, the effective factors of sectoral energy efficiency were identified by a panel data approach. Findings indicate that FDI and relative energy price have positive effects while sectoral value added and capital-labor ratio have negative effects on sectoral energy efficiency.