A Mathematical Model for Measuring Fuel Productivity in Land Transportation

In Iran, oil products are the most valuable export, 30% of which (Crude Oil) is used domestically every year. Countries like Iran depend heavily on oil revenues. One of the main sectors for consumption of crude oil in Iran is the transportation Industry. This paper aims to measure and estimate fuel productivity in land transportation in Iran using available data from 1973-2003. The function of fuel productivity is estimated using time series analysis, and the co-integration with stationary variables have been accounted and analyzed. At this stage, initially the co-integration variables of the model are known, and then, the structure of the model and the number of optimal orders are identified. The next step however, determines the number of co-integration vectors of the model which eventually with some restrictions estimate the fuel productivity function within the land transportation sectors e.g. rail and road.