Estimating The Energy Demand of Natural Gas, Electricity and Petroleum Products in Manufacturing Industries Based on SURE Method

Evaluating the energy demand of the industrial sector is important and necessary for policy making in order to increase production and improve efficiency in this sector. The purpose of this study is to estimate the demand for major energy consumption in the industrial sector, including natural gas energy, electric energy, and petroleum products energy (gas oil and mazut) in the form of a system of equations during the period 1988-2019. The results of this research, based on seemingly unrelated regression equations, show that the demand for natural gas and oil products is inelastic, and natural gas energy input is substituted by electricity and oil product energy is substituted by natural gas. Also, the increase in the added value of the industrial sector has a positive and significant effect on the demand for natural gas energy and petroleum products. In addition, the increase in the ratio of capital to labor in the industrial sector is accompanied by a decrease in the demand for natural gas energy and petroleum products and an increase in the demand for electric energy. In addition, the increase in the ratio of capital to labor in the industrial sector has led to a decrease in the demand for natural gas energy and petroleum products and an increase in the demand for electric energy.