Estimating Energy Demand in Agricultural Sector of Iran

With respect to importance of electricity and gasoline as two important sources of energy in agricultural sector, in this paper by using vector error correction model (VECM), electricity and gasoline demand functions were estimated for 1975-2008 and 1987-2008 periods respectively. Results of the study showed that crop area, previous year gasoline consumption, and its price were variables which significantly affected gasoline demand. Agricultural value added, temperature, previous electricity consumption, and its price affected significantly on electricity demand.