Authors
Abstract
Energy is one of the key factors of production. The growth of industrial production is accompanied with increases in the demand for energy. More Efficient use of energy is of great importance for any system of production. This paper entertains a Granger causality test between energy consumption and the value-added of Iranian industries during 1967-2006 by using Toda-Yamamoto method. The results indicate that there is (a) a bi-directional causality relationship Between industries’ industries Value- Added and electricity consumption , (b) and uni-directional causality relationship from industries’value-added to natural gas and other petroleum products. Consequently, it is possible to pursue a reduction policy in petroleum use without any prejudice to industrial production.
Keywords
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