Deteriminants of Iran's Provincial Energy Intensity Index: Spatal Dynamic Panel Data Approach

Among the important factors that inevitable causes differences in energy intensity between countries and between regions in a country is their geographical location. In inter-provincial and cross-country empirical studies, modeling of energy intensity only in the presence of the space and eliminating the bias estimation will get correct statistical inference. Among provinces of Iran factors such as climate, area and centralization policies (and industry pools) causing spatial autocorolation of energy intensity and modeling energy intensity of provinces must be done in the presence of space dimention. The aim of this study was to investigate the factors affecting energy intensity index in provinces of Iran and estimateing of spatial autocorolation over the period 2000-2013. For this purpose, the emprical model stipulated in the framework of panel data and coefficients were estimated by spatial panel econometric techniques and quasi-maximum likelihood (QMLE) method. Acoording to results, regional spatial elasticity of energy intensity was estimated 0.55 percent. Therefore, to reduce energy intensity among provinces should be act regionaly. The most important policy recommendations of this study for scholars and policymakers were discussed.