A Change in Energy Intensity: Test of Relationship between Energy Intensity and Income in Iran

Abstract

In this paper we study the long- term trend of energy intensity for Iran. We use a quadratic function of the logarithm of income to take account of the change in trend of energy intensity and test the non-monotonic relationship between energy intensity and income during 1967- 2002 We find that the long-run coefficient on squared income is negative and significant, indicating a change in trend of energy intensity.