Estimation of Energy Efficiency and Factor Affecting on it’s in Iran Province (Tobit approach)

One of the main goals for economies is economic growth along with improving the quality of the environment. Accordingly, increasing energy efficiency is an effective policy to reduce the negative externality of economic growth. The study estimates and evaluates the factors affecting energy efficiency by using the provincial-level data over 2006 to 2015. The results of the stochastic frontier approach show that Ilam province has the lowest energy efficiency equal 0.16 and Bosher province with the highest is 0.41. The results of the Tobit model show that industrialization, per capita production and energy price have positive and significant effect on energy efficiency, urbanization and population density have negative and insignificant effect on energy efficiency. Improving the quality of the public transport infrastructure for the utilization of urban scale and population density and improving the manufacturing technology of the industrial sector are the effective policies for improving the quality of the environment along with economic growth.