Analysis of the Nonlinear Effect of Education on Energy Intensity in Iran: A Quantile Regression Approach

Document Type : Original Article

Authors

1 Ph.D. student in Econometrics, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran.

2 M.A. in Curriculum Planning, Islamic Azad University, Sari Branch.

10.22080/jeem.2025.28960.1028

Abstract

The ratio of energy consumption to gross domestic product (GDP) is considered one of the key determinants of environmental risks and an indicator of ecological efficiency. Historically, education has been recognized as one of the most important drivers of economic development and innovation and can serve as an effective tool to promote energy education, implement renewable energy, and improve energy consumption efficiency. The present study aims to examine the nonlinear impact of education on energy intensity in Iran during the years 1990 to 2022, using the quantile regression method. The results indicate that, across all quantiles, education has an inverted U-shaped nonlinear relationship with energy intensity. Additionally, the structural sector of the economy (agriculture and services) has a positive (undesirable) effect on energy intensity. Although at the 10th percentile, an increase in energy prices negatively (favorably) affects energy intensity, this effect becomes positive (undesirable) at higher quantiles (50th-90th percentiles). The findings of this study can assist policymakers in developing more effective strategies to improve energy efficiency and reduce environmental impacts by better understanding the influence of education and other factors.

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