The Importance of Electricity in Economic Development and Transition from Dualism

Limitedenergy resources are problematic challenge nowadays. Electricity is one of the most important clean energies that can have the effective role in a developing economy like Iran. In this study, a theoretical model has been designed on the basis of dualism and structural change theory that shows using electricity increases the share of industry and decreases the share of agriculture in economy and hence by making structural changes, economic development process will be facilitated empirical evidence from sector production functions of Iranian economy, confirms this result.