Nonlinear Effects of Urbanization and Human Capital on Energy Consumption in Different Sectors of Economy in Iran

Subject Areas : Economy

Monere  Dezaji ¹ (Assistant Professor, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran)
Arash  Ketabforoush Badri ² (Ph.D. Student of Monetary Economics, Department of Economics, Qazvin Branch, Islamic Azad University, Qazvin, Iran)

Received: 2017-10-20 Accepted : 2018-06-11 Published : 2019-07-23

Keywords: Human Capital, Panel Data, energy consumption, urbanization,

Abstract :

Scrutiny of energy consumption behavioural patterns in various economic sectors represent an essential step in energy consumption planning and management. Delineation of determinants of energy demand is highly significant in Iran which is a country with rich energy resources, abundant oil and gas supplies, heavy minerals and potential resources. Therefore, using Panel Data Methods, this study explored the effects of urbanization and human capital on energy consumption in Iranian agriculture, industry and services sectors over a 17-year period between 1996 and 2016. The results showed that human capital, workforce productivity, interactive effect of human capital on workforce productivity and the squared value of economic sectors had negative effects while the added value had positive impacts on energy consumption during the specified period. The results of the analyses indicated that human capital and workforce productivity in economic sectors had negative significant interactive effects on energy consumption at the critical value of .01 implying that an increase in human capital and corresponding workforce enhancement will facilitate economizing on energy consumption. Moreover, the estimated coefficients of added value and squared added value of economic activities revealed an inverse U-shaped relationship between added values of economic sectors and energy consumption.

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