The effect of increase in oil price on energy intensity of Iran by usage of Co- Integration concept

In modern world that various evolutions and innovations take place in different aspects, energy has gotten a consequential significance. This special attention got into economical equations when the energy become crisis in 1970 caused stagnancy in the developed countries. This crisis in developed countries caused a major change in high efficiency of energy. Unfortunately this pattern in the most energy exporters has not been observed; therefore these countries generally have low energy efficiency. This disquisition is up to answer this question: Have the raise in the price of oil had a meaningful effect on Iran`s energy intensity? To do so, yearbook data from 1980 till 2008 has been used. The results of this scrutiny show that the raise in price of oil has made government improve their technical systems and establish a logical economy and a more rational method in management of energy consumption.

Keywords:

Energy Intensity , Co- Integration , Engel-Granger Test , Durbin-Watson Test