Nonlinear Effects of Urbanization and Human Capital on Energy Consumption in Different Sectors of Economy in Iran
Subject Areas : EconomyMonere Dezaji 1 , Arash Ketabforoush Badri 2
1 - Assistant Professor, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran
2 - Ph.D. Student of Monetary Economics, Department of Economics, Qazvin Branch, Islamic Azad University, Qazvin, Iran
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.
Aghayi, M., Rezagholozadeh, M. (2015), Energy Consumption and Value Added Growth in Different Sectors of Iran's Economy: Co-integration Approach and Panel Error Correction. Journal of Economic and Regional Development, 22(9), 31-67, (In Persian).
Alaali, F., Roberts, J., & Taylor, K. (2015), The Effect of Energy Consumption and Human Capital on Economic Growth: An Exploration of Oil Exporting and Developed Countries. Sheffield Economics Research Papers Series, 1-23.
Alavi Raad, A., & Kanour, R. (2014), Effect of Energy Efficiency on Value Added of Agricultural, Industrial and Service Economies in Iran: An Analysis Based on the Co-Panel Panel Approach. Agricultural Economics Research, 6(3), 1-19.
Ali, H. S., Law, S. H., Yusop, Z., & Chin, L. (2016), Dynamic Implication of Biomass Energy Consumption on Economic Growth in Sub-Saharan Africa: Evidence from Panel Data Analysis. Geo Journal, 16, 1-10.
Azam, M., Khan, A. Q., Bakhtyar, B., & Emirullah, C. (2015), The Causal Relationship between Energy Consumption and Economic Growth in the ASEAN-5 Countries. Energy Reviews, 47, 732-745.
Azar, M., & Kaveh, K. (2015), Evaluating the Importance of Human Resources Investment in the Productivity of Employees in Companies. Technical Journal of Engineering and Applied Sciences, 5, 211-213, (In Persian).
Bashir, A., Thamrin, K.M., Farhan, M., Mukhlis, T. & Pratama, D. (2018),The Causality between Human Capital, Energy Consumption, CO2 Emissions, and Economic Growth: Empirical Evidence from Indonesia, International Journal of Energy Economics and Policy, 9(2), 98-104.
Becker, G. S. (2002), The Age of Human Capital. Education in the Twenty-First Century.
Burud, S., & Tumolo, M. (2004), Leveraging the New Human Capital: Adaptive Strategies, Results Achieved, and Stories of Transformation. CA: Davies-Black Publishing.
Bhattacharyaa, M., Reddy Paramatib, S., Ozturkc, I., & Bhattacharyad, S. (2016), The Effect of Renewable Energy Consumption on Economic Growth: Evidence from Top 38 Countries. Applied Energy, 162(15), 733-741.
Delangizan, S., Rezaee, E. & Baharipour, S. (2016), The Effect of Industrial Structure on Energy Consumption in Industrial and Industrial Industries, Policy Studies and Energy Planning, 2(3), 133-168,(In Persian).
Farhadi, A., & Bastani, A. (2005), Investigating the Degree of Openness of the Economy and the Growth of Productivity in Selected Countries, Including Iran, with Emphasis on the Law of the Fourth Plan. First National Conference on Productivity and Development, (In Persian).
Fotros, M., & Torkamani, E. (2014), Energy Consumption, Electricity Consumption and Human Development in Iran. Journal of Applied Economic Studies, 3(10), 127-144, (In Persian).
Frank, R. H., & Bernanke, B. S. (2007), Principles of Microeconomics (3rd ed.). New York: McGraw- Hill/Irwin.
Hickman, D. C., & Olney, W.W. (2011), Globalization and Investment in Human Capital. ILRREVIEW, 64(4).
Lin, B., & Moubarak, M. (2014), Renewable Energy Consumption-Economic Growth Nexus for China. Energy Reviews, 40, 111-117.
Jahanghard, E., & Shishvani, M.(2014), Investigating the Direct and Indirect Impact of Human Capital on the Growth of Iran's Economic Activities. Journal of Applied Economics, 4, 37-48, (In Persian).
Iranzadeh, S., Alsadat Mesbahi, N., Shokri, R., & Ebrahimi, A. (2016), A Study of the Relation between Organizational Agility Dimensions and the Productivity of Dana Insurance Company Employees in East Azarbaijan Province. Quarterly Journal of Productivity Management, 10(38), 146-117, (In Persian).
Iranzadeh, S., & Pakdel, M. (2014), Investigating the Role of Knowledge Management Implementation in Labor Productivity in Islamic Azad University Tabriz Branch. Quarterly Journal of Productivity Management, 8(28), 51-74, (In Persian).
Jones, B. F. (2014), The Human Capital Stock: A Generalized Approach. American Economic Review, 1-23.
Jung, J., & Mercenier, J. (2008), A Simple Model of Offshore Outsourcing, Technology Upgrading and Welfare, THEMA Working Paper.
Leslie, A. W. (2004), Performemce Management,getting It Right from Start, SHRM Research Quartely.
Lucas, R. (2015), Human Capital and Growth. American economic Review, 105(5), 85-88.
Matthew, O.A., Ede, C.U., Osabohien, R., Ejemeyovwi, J., Fasina, F.F. & Akinpelumi, D. (2018), Electricity Consumption and Human Capital Development in Nigeria: Exploring the Implications for Economic Growth, International Journal of Energy Economics and Policy, 8(6), 8-15.
Naji Meydani, A., Mahdi Adeli, M., & Arabshahi Deloyi, M. (2015), Investigating the Relationship Between Industrialization and Energy Efficiency in the Industrial Sector in Iran. Journal of Economic Policy, 7(13), 27-56, (In Persian).
Pourebadolahn, M., Asgharpour, H., Fallahi, F., & Abdi, H. (2012), The Effect of Human Capital on the Export of Industrial Goods in Iran. Journal of Monetary and Financial Economics, 19(3), 189-216, (In Persian).
Ronning, A., & Kearney, M. L. (1998), Graduate Prospects in a Changing Society. United Nations Educational, Scientific and Cultural Organization.
Schultz, T. W. (1971), Investment in Human Capital. New York. The Free Publishing.
Stern, D. I., & Celeveland C. J. (2004), Energy and Economic Growth. Rensselaer Working Papers, 0410.
Zanynodini, M. (2014), The Study of the Effect of Quality of Working Life on Human Resource Efficiency of State Banks of Fars Province, Articles of the International Conference on Humanities and Behavioral Studies.
_||_Aghayi, M., Rezagholozadeh, M. (2015), Energy Consumption and Value Added Growth in Different Sectors of Iran's Economy: Co-integration Approach and Panel Error Correction. Journal of Economic and Regional Development, 22(9), 31-67, (In Persian).
Alaali, F., Roberts, J., & Taylor, K. (2015), The Effect of Energy Consumption and Human Capital on Economic Growth: An Exploration of Oil Exporting and Developed Countries. Sheffield Economics Research Papers Series, 1-23.
Alavi Raad, A., & Kanour, R. (2014), Effect of Energy Efficiency on Value Added of Agricultural, Industrial and Service Economies in Iran: An Analysis Based on the Co-Panel Panel Approach. Agricultural Economics Research, 6(3), 1-19.
Ali, H. S., Law, S. H., Yusop, Z., & Chin, L. (2016), Dynamic Implication of Biomass Energy Consumption on Economic Growth in Sub-Saharan Africa: Evidence from Panel Data Analysis. Geo Journal, 16, 1-10.
Azam, M., Khan, A. Q., Bakhtyar, B., & Emirullah, C. (2015), The Causal Relationship between Energy Consumption and Economic Growth in the ASEAN-5 Countries. Energy Reviews, 47, 732-745.
Azar, M., & Kaveh, K. (2015), Evaluating the Importance of Human Resources Investment in the Productivity of Employees in Companies. Technical Journal of Engineering and Applied Sciences, 5, 211-213, (In Persian).
Bashir, A., Thamrin, K.M., Farhan, M., Mukhlis, T. & Pratama, D. (2018),The Causality between Human Capital, Energy Consumption, CO2 Emissions, and Economic Growth: Empirical Evidence from Indonesia, International Journal of Energy Economics and Policy, 9(2), 98-104.
Becker, G. S. (2002), The Age of Human Capital. Education in the Twenty-First Century.
Burud, S., & Tumolo, M. (2004), Leveraging the New Human Capital: Adaptive Strategies, Results Achieved, and Stories of Transformation. CA: Davies-Black Publishing.
Bhattacharyaa, M., Reddy Paramatib, S., Ozturkc, I., & Bhattacharyad, S. (2016), The Effect of Renewable Energy Consumption on Economic Growth: Evidence from Top 38 Countries. Applied Energy, 162(15), 733-741.
Delangizan, S., Rezaee, E. & Baharipour, S. (2016), The Effect of Industrial Structure on Energy Consumption in Industrial and Industrial Industries, Policy Studies and Energy Planning, 2(3), 133-168,(In Persian).
Farhadi, A., & Bastani, A. (2005), Investigating the Degree of Openness of the Economy and the Growth of Productivity in Selected Countries, Including Iran, with Emphasis on the Law of the Fourth Plan. First National Conference on Productivity and Development, (In Persian).
Fotros, M., & Torkamani, E. (2014), Energy Consumption, Electricity Consumption and Human Development in Iran. Journal of Applied Economic Studies, 3(10), 127-144, (In Persian).
Frank, R. H., & Bernanke, B. S. (2007), Principles of Microeconomics (3rd ed.). New York: McGraw- Hill/Irwin.
Hickman, D. C., & Olney, W.W. (2011), Globalization and Investment in Human Capital. ILRREVIEW, 64(4).
Lin, B., & Moubarak, M. (2014), Renewable Energy Consumption-Economic Growth Nexus for China. Energy Reviews, 40, 111-117.
Jahanghard, E., & Shishvani, M.(2014), Investigating the Direct and Indirect Impact of Human Capital on the Growth of Iran's Economic Activities. Journal of Applied Economics, 4, 37-48, (In Persian).
Iranzadeh, S., Alsadat Mesbahi, N., Shokri, R., & Ebrahimi, A. (2016), A Study of the Relation between Organizational Agility Dimensions and the Productivity of Dana Insurance Company Employees in East Azarbaijan Province. Quarterly Journal of Productivity Management, 10(38), 146-117, (In Persian).
Iranzadeh, S., & Pakdel, M. (2014), Investigating the Role of Knowledge Management Implementation in Labor Productivity in Islamic Azad University Tabriz Branch. Quarterly Journal of Productivity Management, 8(28), 51-74, (In Persian).
Jones, B. F. (2014), The Human Capital Stock: A Generalized Approach. American Economic Review, 1-23.
Jung, J., & Mercenier, J. (2008), A Simple Model of Offshore Outsourcing, Technology Upgrading and Welfare, THEMA Working Paper.
Leslie, A. W. (2004), Performemce Management,getting It Right from Start, SHRM Research Quartely.
Lucas, R. (2015), Human Capital and Growth. American economic Review, 105(5), 85-88.
Matthew, O.A., Ede, C.U., Osabohien, R., Ejemeyovwi, J., Fasina, F.F. & Akinpelumi, D. (2018), Electricity Consumption and Human Capital Development in Nigeria: Exploring the Implications for Economic Growth, International Journal of Energy Economics and Policy, 8(6), 8-15.
Naji Meydani, A., Mahdi Adeli, M., & Arabshahi Deloyi, M. (2015), Investigating the Relationship Between Industrialization and Energy Efficiency in the Industrial Sector in Iran. Journal of Economic Policy, 7(13), 27-56, (In Persian).
Pourebadolahn, M., Asgharpour, H., Fallahi, F., & Abdi, H. (2012), The Effect of Human Capital on the Export of Industrial Goods in Iran. Journal of Monetary and Financial Economics, 19(3), 189-216, (In Persian).
Ronning, A., & Kearney, M. L. (1998), Graduate Prospects in a Changing Society. United Nations Educational, Scientific and Cultural Organization.
Schultz, T. W. (1971), Investment in Human Capital. New York. The Free Publishing.
Stern, D. I., & Celeveland C. J. (2004), Energy and Economic Growth. Rensselaer Working Papers, 0410.
Zanynodini, M. (2014), The Study of the Effect of Quality of Working Life on Human Resource Efficiency of State Banks of Fars Province, Articles of the International Conference on Humanities and Behavioral Studies.
