Investigating Energy Intensity Convergence in the Iranian Manufacturing Industries

Air pollution concerns, climate change, and sustainable development necessitate the discussion of the dynamics of energy intensity. Nowadays, energy convergence is widely used as a tool for considering the dynamics of energy intensity. The energy intensity convergence in manufacturing industries is suitable to assess whether there is a knowledge spillover between manufacturing industries and whether government policies have been effective for reducing energy intensity in manufacturing industries. The purpose of the study is to examine energy intensity convergence in Iranian manufacturing industries. To do that, we collected data from nine manufacturing industries from 1995 to 2015 and employed the generalized method of moments in panel data (GMM) technique. The results of the model estimation show that there is  convergence of energy intensity in the manufacturing industries.