The Effect of Social Capital on Household electricity Consumption in Iranian Provinces

Social capital one of the important aspects of sustainable development. It can be used to solve problems of social capital as the main source of problem solving and correction of existing processes. The purpose of this paper is to examine the simultaneous effect of social capital, economic and environmental variables on electricity consumption in the household sector of Iranian provinces. In this regard, using the GMM method, during the period of 2000-2015, the explanation of the effect of social capital index on household electricity consumption has been studied. The results showed that social capital had a negative and significant effect on household electricity consumption. Social capital embedded in the relationships between individuals and, consequently, their participation in protecting national and natural capital is one of the factors that investment in this field can reduce the loss of energy sources such as electricity. Reducing administrative corruption, encouraging popular institutions, reducing the breakdown between government and people, education; among other things, it can be done to increase social capital. Other results of the paper also showed that per capita income, cooling demand, household size and consumption of the previous period have a positive effect on the household electricity consumption. Electricity consumption of the previous period had the most impact on the household electricity consumption. The price elasticity of household electricity consumption has been negatively evaluated, so rising electricity prices have reduced electricity consumption. The variable heating and household gas prices do not have a significant effect on electricity consumption.