Document Type : Original Article
Authors
1
Associate Professor, Department of Energy Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran
2
Master's Student in Economics, Faculty of Economics, University of Tehran, Tehran, Iran.
3
Department of Economics, Faculty of Economics, University of Tehran, Tehran, Iran.
10.22080/jeem.2024.27365.1010
Abstract
A large part of the gross domestic product in each country is realized by governments, which implies the influence of many economic and non-economic variables on the way the government works and policies. One of the basic channels and tools of the government in the energy sector is government spending, which can have an effective or ineffective effect depending on the type of performance. In the present study, using the ARDL approach, the nonlinear relationship between government size and energy intensity was investigated in the period from 1973 to 2021. Also, the effect of factors such as economy structure, energy price, financial development and inflation were investigated as control variables. The moving trend of the size of the government shows that it has gone through a downward trend from the second plan to the sixth plan. In such a way that it has reached from 22.3% in the second program to 17.1% in the sixth program. Energy intensity has had a relatively fluctuating trend. It should also be noted that from the first to the sixth program, the average energy intensity has always been higher than the average of the entire period under review. The results of long-run estimates show that the size of the government has a U-shaped effect on energy intensity. The ratio of government expenditure to GDP (government size) that minimizes energy intensity is 49.9% and it shows that before the ratio of 49.9%, an increase in the size of the government reduces energy intensity and ...
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